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Top 5 States Grappling with Power Thefts
Aug 3, 2016
Power shortage is one of the biggest problems faced by the country. Shortage of coal had led to poor electricity generation in the recent past. While the issue of shortfall in coal production has been rectified, another problem facing the power sector is the dismal financial health of state electricity boards (SEBs). Distribution of cheap power to attract voters as also rampant power theft have hit the financials of SEBs over the years. Burdened by huge accumulated losses and piled up debt, state run distribution companies had not been entering into power purchase agreements with generation companies. This has led to lower capacity utilisation as well as slowdown in new investments by power producers.
As per a survey by Power Finance Corporation, states that had higher incidence of power thefts as well as consumer complaints faced greater power deficits. States such as Bihar and Uttar Pradesh, that have been grappling with huge power cuts, incidentally also rank high on power thefts and pending consumer complaints. Therefore, the country's power woes will not come to an end unless SEBs pull up their socks and bring in more efficiency in their operations.
Data Source: Business Standard, Power Finance Corporation
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