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Consider the following reasons for financial sickness of State Electricity Boards (SEBs) in India:
I. Sale of power to agricultural and domestic consumers below the cost of production
II. Transmission and distribution losses are very high
III. Lack of commercial autonomy for SEBs
IV. State Governments have implemented social subsidy policies through SEBs
Which of the above are correct?
- a)I, II and III
- b)I, II, III and IV
- c)I, III and IV
- d)II, III and IV
Correct answer is option 'B'. Can you explain this answer?
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Consider the following reasons for financial sickness of State Electr...
The following are the reasons for the financial sicknessof State Electricity Boards in India.
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I. Sale of power to agricultural and domestic consumers below the cost of production
II. Transmission and distribution losses are very high
III. Lack of commercial autonomy for SEBs
IV. State Governments have implemented social subsidy policies through SEBs
Most Upvoted Answer
Consider the following reasons for financial sickness of State Electr...
Reasons for Financial Sickness of State Electricity Boards (SEBs)
The financial health of State Electricity Boards (SEBs) in India has been a significant concern, and several factors contribute to their financial sickness. Below are the key reasons:
1. Sale of Power Below Cost
- SEBs sell electricity to agricultural and domestic consumers at rates lower than the actual cost of production.
- This leads to substantial revenue losses, making it unsustainable for SEBs to operate profitably.
2. High Transmission and Distribution Losses
- The transmission and distribution (T&D) losses in India are among the highest in the world, often exceeding 20%.
- These losses occur due to outdated infrastructure, theft, and inefficiencies, further straining the financial resources of SEBs.
3. Lack of Commercial Autonomy
- SEBs often operate under strict governmental control, limiting their ability to make independent financial decisions.
- This lack of commercial autonomy hampers their efficiency and responsiveness to market conditions, leading to poor financial health.
4. Social Subsidy Policies
- State governments implement various social subsidy policies through SEBs to support low-income households and agricultural sectors.
- While well-intentioned, these subsidies contribute to the financial burden on SEBs, as they often have to absorb the costs without adequate compensation.
Conclusion
In conclusion, all four reasons listed above contribute to the financial sickness of SEBs in India. Therefore, the correct answer is option 'B', which includes all the reasons: I, II, III, and IV. Addressing these issues is crucial for improving the financial viability and operational efficiency of SEBs in the country.
The financial health of State Electricity Boards (SEBs) in India has been a significant concern, and several factors contribute to their financial sickness. Below are the key reasons:
1. Sale of Power Below Cost
- SEBs sell electricity to agricultural and domestic consumers at rates lower than the actual cost of production.
- This leads to substantial revenue losses, making it unsustainable for SEBs to operate profitably.
2. High Transmission and Distribution Losses
- The transmission and distribution (T&D) losses in India are among the highest in the world, often exceeding 20%.
- These losses occur due to outdated infrastructure, theft, and inefficiencies, further straining the financial resources of SEBs.
3. Lack of Commercial Autonomy
- SEBs often operate under strict governmental control, limiting their ability to make independent financial decisions.
- This lack of commercial autonomy hampers their efficiency and responsiveness to market conditions, leading to poor financial health.
4. Social Subsidy Policies
- State governments implement various social subsidy policies through SEBs to support low-income households and agricultural sectors.
- While well-intentioned, these subsidies contribute to the financial burden on SEBs, as they often have to absorb the costs without adequate compensation.
Conclusion
In conclusion, all four reasons listed above contribute to the financial sickness of SEBs in India. Therefore, the correct answer is option 'B', which includes all the reasons: I, II, III, and IV. Addressing these issues is crucial for improving the financial viability and operational efficiency of SEBs in the country.
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Consider the following reasons for financial sickness of State Electricity Boards (SEBs) in India:I. Sale of power to agricultural and domestic consumers below the cost of productionII. Transmission and distribution losses are very highIII. Lack of commercial autonomy for SEBsIV. State Governments have implemented social subsidy policies through SEBsWhich of the above are correct?a)I, II and IIIb)I, II, III and IVc)I, III and IVd)II, III and IVCorrect answer is option 'B'. Can you explain this answer?
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Consider the following reasons for financial sickness of State Electricity Boards (SEBs) in India:I. Sale of power to agricultural and domestic consumers below the cost of productionII. Transmission and distribution losses are very highIII. Lack of commercial autonomy for SEBsIV. State Governments have implemented social subsidy policies through SEBsWhich of the above are correct?a)I, II and IIIb)I, II, III and IVc)I, III and IVd)II, III and IVCorrect answer is option 'B'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following reasons for financial sickness of State Electricity Boards (SEBs) in India:I. Sale of power to agricultural and domestic consumers below the cost of productionII. Transmission and distribution losses are very highIII. Lack of commercial autonomy for SEBsIV. State Governments have implemented social subsidy policies through SEBsWhich of the above are correct?a)I, II and IIIb)I, II, III and IVc)I, III and IVd)II, III and IVCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following reasons for financial sickness of State Electricity Boards (SEBs) in India:I. Sale of power to agricultural and domestic consumers below the cost of productionII. Transmission and distribution losses are very highIII. Lack of commercial autonomy for SEBsIV. State Governments have implemented social subsidy policies through SEBsWhich of the above are correct?a)I, II and IIIb)I, II, III and IVc)I, III and IVd)II, III and IVCorrect answer is option 'B'. Can you explain this answer?.
Consider the following reasons for financial sickness of State Electricity Boards (SEBs) in India:I. Sale of power to agricultural and domestic consumers below the cost of productionII. Transmission and distribution losses are very highIII. Lack of commercial autonomy for SEBsIV. State Governments have implemented social subsidy policies through SEBsWhich of the above are correct?a)I, II and IIIb)I, II, III and IVc)I, III and IVd)II, III and IVCorrect answer is option 'B'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following reasons for financial sickness of State Electricity Boards (SEBs) in India:I. Sale of power to agricultural and domestic consumers below the cost of productionII. Transmission and distribution losses are very highIII. Lack of commercial autonomy for SEBsIV. State Governments have implemented social subsidy policies through SEBsWhich of the above are correct?a)I, II and IIIb)I, II, III and IVc)I, III and IVd)II, III and IVCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following reasons for financial sickness of State Electricity Boards (SEBs) in India:I. Sale of power to agricultural and domestic consumers below the cost of productionII. Transmission and distribution losses are very highIII. Lack of commercial autonomy for SEBsIV. State Governments have implemented social subsidy policies through SEBsWhich of the above are correct?a)I, II and IIIb)I, II, III and IVc)I, III and IVd)II, III and IVCorrect answer is option 'B'. Can you explain this answer?.
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ample number of questions to practice Consider the following reasons for financial sickness of State Electricity Boards (SEBs) in India:I. Sale of power to agricultural and domestic consumers below the cost of productionII. Transmission and distribution losses are very highIII. Lack of commercial autonomy for SEBsIV. State Governments have implemented social subsidy policies through SEBsWhich of the above are correct?a)I, II and IIIb)I, II, III and IVc)I, III and IVd)II, III and IVCorrect answer is option 'B'. Can you explain this answer? tests, examples and also practice UPSC tests.
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