- Distribution Sector Problems:
- State distribution companies (DISCOMs) lack finances to buy power.
- Leads to severe power cuts and blackouts.
- Surplus power with generators running at less than full capacity.
- Interference from State Govt. in DISCOMs (mostly state PSUs).
- Poor distribution infrastructure, lack of capital/technology for upgrade.
- Inability to increase electricity tariffs due to government control.
- DISCOMs used as tools of populism (free/subsidized power).
- Cross subsidization of power (industry pays higher tariffs).
- High Aggregate Technical and Commercial (AT&C) losses (20-22%).
- General Challenges:
- Fossil fuels are major energy source, but burning them produces greenhouse gases.