Most of the world is in consensus that electricity can be utilized into accomplishing tasks and it has made most of the people’s lives easier. But there have been some challenges which are being by companies distributing electricity and it has been in explained in comprehensive details:
- The issues revolving around power deficit involve fuel shortage, high Aggregate Technical and Commercial (AT & C) losses, different tariff structures, late revisions of tariffs, etc.
- Borrowing by state-coms have been increasing over the years. Their accumulated losses have risen by almost 60,000 crores in the past decade. Owing to these losses, state-discoms have relied on loans to run their operations. Borrowings taken by such companies have increased by almost 4 lakh crore rupees in the past 5 years at Compound Annual Growth Rate (CAGR) at 23%.
- The coal sector has not matched the production with the increase in coal-based generation. This has led to create a gap between the demand and supply of coal. As an outcome, the country’s exports have gone up by almost 200% in the past 10 years. Such a coal shortage has an impact on power generation which then leads to power deficits.