Target Exam

CUET

Subject

Economics

Chapter

Indian Economic Development: Infrastructure

Question:

Why are the State Electricity Boards (SEBs), which distribute electricity, incurring losses?

Options:

Due to transmission and distribution losses

Due to power shortages

Due to political interference

All of the above

Correct Answer:

Due to transmission and distribution losses

Explanation:

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. Some scholars also say that the 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.