Some of the problems being faced by India's power sector are
(i) At present, India is able to add only 20000 MW a year. India's installed capacity to generate electricity is not sufficient to feed an annual economic growth of 9% and even this capacity remains under-utilised due to inefficient operation of plants.
(ii) State Electricity Boards (SLBs) which distribute electricity, incur losses which exceed Rs. 500 billion due lo transmission and distribution losses, wrong pricing of electricity and other inefficiencies.
(iii) Electricity is stolen in different areas and tariffs are not paid which also adds to the losses of SEBs.
(iv) Private sector power generators and foreign investors are yet not ready to enter the power generation sector in a major way which has placed the responsibility largely on public sector which is under financial pressure.
(v) There is general public unrest duo to high power tariffs and prolonged power cuts in different parts of the country which even comes to the safety of power sector employees at times.
(vi) Thermal power plants which have the greatest share in India's power sector are facing shortage of raw material and coal supplies.
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