Given below are some statements. Read them carefully and choose the correct statement (s) from the given options.

Statement 1:  India’s installed capacity to generate electricity is not sufficient to feed the high economic growth.   

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

Both statements are correct.

The correct answer is option 3: Both statements are correct.

 Some of the challenges that India’s power sector faces today are —

(i) India’s installed capacity to generate electricity is not sufficient to feed the high economic growth. In order to meet the growing demand for electricity, India’s commercial energy supply needs to grow at about 7 per cent. At present, India is able to add only 20,000 MW a year. Even the installed capacity is under-utilised because plants are not run properly.

(ii) State Electricity Boards (SEBs), which distribute electricity, incur losses exceed `20,000 crores. This is due to transmission and distribution losses, wrong pricing of electricity and other inefficiencies. Some scholars also say that distribution of electricity to farmers is the main reason for the losses; electricity is also stolen in different areas which also adds to the woes of SEBs.

(iii) private sector power generators are yet to play their role in a major way; same is the case with foreign investors.

(iv) there is general public unrest due to high power tariffs and prolonged power cuts in different parts of the country, and

(v) thermal power plants, which are the mainstay of India’s power sector are facing shortage of raw material and coal supplies.