Challenges and issues in indian power sector

Electricity is an essential source for the development of a country. India ranked third in production and consumption of electricity in the world. India’s power sector has an installed capacity of 347.22 GW. The electricity demand in India has increased rapidly and it expected rise further in future. Despite the country has surplus energy, it facing many problems in serving electricity to all citizen. Basically the purpose of power sector is to provide uninterrupted power supply to all, but not yet been able to give power connection for all the citizen. Currently India power sector facing lot of challenges and issues regarding debt, fuel concern, financial issues, power cuts, environmental damage, energy theft etc. 90% of the coal fired power plants are in violation of emission norms notified by the ministry of environment forest and climate change. Energy theft concerned, Indian power sector lose around Rs.1,15,020 crore every year and it reduces the GDP around 1.5%.(A world bank estimate). Transmission and distribution losses also a major issue in this sector. According to various reports, despite the country ranks fifth in the world in terms of installed capacity, still more than 300 million people do not have access to electricity. The losses make rise to a vicious cycle-utilities running into losses leading to an increase in power tariff leading to more burden on the end users which ultimately results in to more unscrupulous ways to energy theft. The major challenges and issues are discussing briefly in this article.