Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Indian Economic Development: Infrastructure

Question:

Which of the following can be considered a challenge that India's power sector faces today?

Statement 1- There is general public unrest due to high power tariffs.

Statement 2- Thermal power plants, which are the mainstay of India’s power sector are facing a shortage of raw materials and coal supplies.

Options:

Only statement 1 is true

Only statement 2 is true

Both statement 1 and statement 2 are true

Neither statement 1 nor statement 2 is true

Correct Answer:

Both statement 1 and statement 2 are true

Explanation:

Following are some of the challenges faced by the power sector in India:

  1. There is general public unrest due to high power tariffs and prolonged power cuts in different parts of the country.
  2. Thermal power plants, which are the mainstay of India’s power sector are facing a shortage of raw materials and coal supplies.
  3. India’s installed capacity to generate electricity is not sufficient to feed the high economic growth.
  4. State Electricity Boards (SEBs), which distribute electricity, incur losses exceeding `20,000' crores. This is due to transmission and distribution losses, wrong pricing of electricity, and other inefficiencies.