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.
Answer & explanation
Correct answer: option 3
The correct answer is option 3: Both statement 1 and statement 2 are true
Following are some of the challenges faced by the power sector in India:
- There is general public unrest due to high power tariffs and prolonged power cuts in different parts of the country.
- Thermal power plants, which are the mainstay of India’s power sector are facing a shortage of raw materials and coal supplies.
- India’s installed capacity to generate electricity is not sufficient to feed the high economic growth.
- 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.