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!.