India has 75 million households with no access to electricity. To generate power we import coal. We transmit electricity across the nation with 25% Aggregate Technical and Commercial (AT&C) losses while selling it at prices that are disconnected from market reality. With a widening gap between increasing demand and the low levels of supply, state
India is structurally short of electricity. Power pricing is fundamentally disconnected, with retail tariffs significantly lower than the cost of production. Electricity losses, due to theft and illegal connections, account for more than 25% of power generated in India. Massive state electricity board bailouts have resulted in higher losses, mostly borne by public sector banks.
We need a coherent political message on demand, cost and pricing reform. India's tryst with destiny is running out of fuel. We are sleep-walking towards an energy crisis. Our energy security is buffeted by rising prices, growing fuel imports and a troublesome current account deficit that is pushing us into regional competition with China. India's