ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

N Vijayamohanan PillaiSubscribe to N Vijayamohanan Pillai

Plight of Power Sector in India-II

The unaccountability of state Electricity Boards (SEBs) in India has led to gross inefficiency at all levels. This article examines significant aspects of inefficiency costs involved in SEBs functioning. Part I of this article, published last week, dealt with physical performance focusing on such aspects as technical inefficiency, T and D losses, its possible underestimation, as well as some aspects of institutional and organisational inefficiency. Part II deals with the supply cost of electricity, tariff and revenue, as well as financial performance.

Plight of Power Sector In India - I

True to the spirit of a social democratic state, India originally evolved her power development policy in line with the state's professed commitment to honouring and ensuring social security equations. Although the State Electricity Boards (SEBs) were to function as corporations, they became agents of the state governments. This article attempts to throw light on the significant aspects of inefficiency costs involved in SEBs' functioning. Part I deals with physical performance focusing on such aspects, as technical efficiency, T and D losses, and their possible underestimation as well as some aspects of institutional and organisational inefficiency. Part II, to appear next week, will deal with the supply cost of electricity, tariff and revenue, as well as financial performance.
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