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Infrastructure — Economics STD 12 Commerce — Question

CBSE BoardEnglish MediumSTD 12 CommerceEconomicsInfrastructure4 Marks
Question
Why do State Electricity Boards suffer from serious deficiencies?
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Answer

The State Electricity Boards (SEBs) suffer from serious deficiencies. Each SEB operates as a state monopoly, combining functions of generation, transmission and distribution of electricity. These boards have to incur huge loss due to transmission and distribution losses of electricity, low capacity utilisation, deficiency in generating equipment, poor quality of coal, underinvestment in the transmission system, inadequate billing and substantial pilferage of power.
The most serious weakness of SEBs is their inability to arrive at and implement an economic power tariff. Both agriculture and domestic sectors are highly subsidised and SEBs suffer huge losses due to the sale of power to these sectors.

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