Question:

Mention any three challenges facing the power sector in India.

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The government's \textbf{UDAY Scheme} (Ujwal DISCOM Assurance Yojana, 2015) was launched specifically to address the financial health of electricity distribution companies (DISCOMs).
Updated On: Mar 19, 2026
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Solution and Explanation

Step 1: Understanding the Concept:
Infrastructure, particularly energy, is a critical driver of economic development. The power sector in India faces several structural and operational challenges that hinder its efficiency and expansion.  

Step 2: Detailed Explanation: 
Three major challenges facing the Indian power sector are: 
1. Insufficient Installed Capacity: The total electricity generated is not adequate to meet the growing industrial and domestic demand, leading to frequent power cuts and load shedding, especially in rural areas. 
2. High Transmission and Distribution (T&D) Losses: A significant percentage of generated electricity is lost during transmission through the grid or is stolen illegally (power theft). India's T&D losses are among the highest in the world. 
3. Financial Sickness of State Electricity Boards (SEBs): Many SEBs are in heavy debt due to politically motivated low tariff pricing, free electricity to farmers, and chronic inefficiencies in billing and collection. 

Step 3: Final Answer: 
Three challenges: (1) Insufficient generation capacity, (2) High T\&D losses, (3) Financial distress of State Electricity Boards. 
 

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