Question

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

State and discuss any two problems faced by the power sector in India.

Answer 1

The power sector is facing critical challenges. These are as follows:

1. India’s installed electricity generation capacity is insufficient to meet an annual economic growth rate of 7%.
2. The State Electricity Boards (SEBs) that distribute electricity incurred a loss of more than Rs. 500 billion in transmission and distribution.
3. The wrong pricing of electricity, like the supply of electricity at subsidised rates to the agricultural sector and theft of electricity, has exaggerated the problems of the power sector.
4. The high power tariffs and prolonged power cuts are another challenge in the power sector.
5. The thermal power station faces the scarcity of raw materials to generate electricity.

Answer 2

Problems faced by the Power Sector in India:

1. Transmission and Distribution Loss: The loss of electricity that occurs due to resistance in power lines and inefficiency in distribution transformers is known as transmission and distribution loss. The State Electricity Boards (SEBs), which are responsible for distributing electricity, have faced huge losses of more than ₹500 billion because of these losses. As a result, nearly 50% of the electricity produced gets wasted.
2. Insufficient Capacity: India is currently able to increase its power generation capacity by only about 20,000 MW each year, whereas the required increase is around 1,00,000 MW. If India wants to achieve a GDP growth rate of 7–8%, electricity production must also grow at about 7%. However, this is not possible with the existing power production capacity.