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Question

What problems are being faced by the power sector in India?

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Solution

Some of the problems being faced by India's power sector are

(i) At present, India is able to add only 20000 MW a year. India's installed capacity to generate electricity is not sufficient to Iead an annual economic growth of 7-8% and even this capacity remains under-utilised due to inefficient operation of plants.

(ii) State Electricity Boards (SEBs), which distribute electricity, incur losses exceeding 2500 billion. due to transmission and distribution losses, wrong pricing of electricity and other inefficiencies.

(iii) Electricity is stolen in different areas and tariffs are not paid which also adds to the losses of SEBs.

(iv) Private sector power generators and foreign investors are not yet ready to enter the power generation sector in a major way, which has placed the responsibility largely on the public sector which is under financial pressure.

(v) There is general public unrest due to high power tariffs and prolonged power cuts in different parts of the country.

(vi) Thermal power plants which have the greatest share in India's power sector, are facing the shortage of raw material and coal supplies.


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