Power sector and its menace in India

India is a power deficit country and despite this, there is rampant idle capacity, inefficient distribution companies and lack of payments by users to the electricity companies.

The major issue facing power companies is late payment by users or incomplete payment for the power utilized by the users. Therefore losses mount for the companies and as a result loans disbursed to these power companies are left unpaid or become NPAs’.

Case in point is Kanpur in UP. Due to power theft, the IAS officer or designated chair person of the electricity company takes action against non-cooperative consumers by cutting supply. However, the local MLA takes up for the AAM janta and ensures that the IAS officer is transferred.

As a result, the inefficiencies continue and it goes to reflect the poor state of affairs in power sector. AT this rate, the sector will continue to face malaise with non-payment and idle capacity.

The power sector needs reforms, better payment mechanism by consumers and preventive methods for power theft!.

Rajeev Thakkar

He is the Chief Investment Officer of PPFAS Mutual Fund.

Regarded by many as a polymath, his presentations, cover diverse topics ranging from the state of the shipping industry, corporate leadership, capital allocation and individual companies like Google. His audience usually takes to him wholeheartedly, as he possesses the endearing quality of 'talking to' them and not 'talking down to' them. Apart from them, certain presentations may be made by a few of their colleagues on account of them being well versed with a specific topic.

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