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बेसिक इंग्लिश का दूसरा सत्र (कक्षा प्रारंभ : 22 अक्तूबर, शाम 3:30 से 5:30)
Q. Power sector reforms in India should be distribution driven: Explain this statement in the background of recent tragic death of BSES engineer in the national capital.
Jul 20, 2017 Related to : GS Paper-3

Ans :


On the complaint of power theft, the engineers visited the site were chased by a mob despite police presence. This resulted in a car crash that took his life and left others critically injured. Other than rampant lawlessness and the general surrender of police to mobs, it also shows why India’s power sector needs repeated bailouts. 

33% of Indian households in 2011 did not have access to electricity in 2011.hence, if power theft remains unchecked, there won’t be enough resources to electrify every home. 


Electricity foregone on account of aggregate technical and commercial losses was about 24.6% in 2014-15. In other words, only three of every four units of electricity generated get paid for by consumers. In addition to using the tax payer’s money for such losses, this has also been used for bailouts for financial institutions which have lent money to discoms, and other bail outs of farmers etc. Unless power consumed is paid for, it will be difficult for discoms to generate resources to upgrade infrastructure. This translates into poor electricity supply and a slow pace of industrialisation. 

In addition to these, political patronage of theft and non-payment for power in the states should be looked into. It is true that of late, 25 states have issued bonds under the Ujwal Discom Assurance Yojana for over Rs 2 lakh crore, to clear state power utility losses. This also requires revamped institutional mechanism and improved governance to reduce revenue losses in distribution. 


Politically sanctioned power theft can cripple Indian industry. Getting India’s power reforms right is important step in making Indian manufacturing competitive. If politicians feel poor consumers cannot pay for electricity, they should be provided for through a transparent government subsidy. This should be supported by stringent norms to boost transparency. In addition to these, police should not surrender to mobs. Govt. must take steps in maintaining the law and order situation which ultimately helps in economy’s growth. 

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