Problems of the power sector in India :
(i) Insufficient installed capacity to generate electricity : India is able to add only 20,000 MW a year. Even the installed capacity is underutilised because plants are not run properly. If the Indian economy wants to touch the GDP growth rate of 7−8%, it must target to produce electricity at a growth of 7%, which is not possible with the present production capacity.
(ii) SEBs (State Electricity Boards) which distribute electricity, incur losses which exceed ₹500 billion: This is due properly to transmission and distribution losses, wrong pricing of electricity and other inefficiencies. Some scholars also say that unequal distribution of electricity to farmers is the main reason for the losses; electricity is also stolen in different areas which also adds to the woes of SEBs.