Improving state finances by reducing power losses

Inadequate and poor-quality power supply means frequent interruptions, poor voltage levels, and dissatisfied consumers across much of the country. Adding up all the losses in the system—including the losses due to energy dissipated in conductors, transformers and other equipment, along with pilferage by those who bypass meters, and losses from failure to recover the amount billed to consumers—India’s total energy losses came to 24% in 2015-16, significantly more than international norms.

This, however, is an improvement on 2003-04 when the losses were 38%. Progress was made because of national- and state-level reforms.

New research asks how India can get its energy systems away from vicious cycles that are still prevalent. Gaurav Bhatiani, chief operating officer, IL&FS, and his colleagues Bhawna Tyagi and Sonali Chowdhry were commissioned by Tata Trusts and the Copenhagen Consensus for the India Consensus project to look at state-level solutions for Andhra Pradesh and Rajasthan.