Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks


Login Failure
(Please do not use this option on a public machine)
  Sign Up | Forgot Password?  

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

This Chart Of The Day was published in The 5 Minute WrapUp - Dividends Versus Capital Gains: Which Side Are You On?

Equitymaster requests your view! Post a comment on "Top 5 States Grappling with Power Thefts". Click here!


Our Most Popular Charts

India's #1 Trader
Reveals His Secrets

Secret To Increasing Your Trading Profits Today
Get this Special Report,
The Secret to Increasing Your Trading Profits Today, Now!
We will never sell or rent your email id.
Please read our Terms