The correct option is 2 and 3 only.
Explanation
The power sector in India is a critical component of infrastructure but faces structural challenges across the value chain, including generation capacity, fuel security, and the financial viability of distribution networks.
Statement-wise Analysis:
- Statement 1 is Incorrect: To sustain an annual economic growth rate of 7-8 %, India requires a commensurate increase in commercial energy supply. Historically, the installed power generation capacity has been considered insufficient to reliably support such high growth rates. While capacity has increased, issues related to Plant Load Factor (PLF) and peak demand deficits persist, meaning the existing capacity is not fully adequate to feed an 8 % growth trajectory without expansion.
- Statement 2 is Correct: State Electricity Boards (SEBs) and Distribution Companies (DISCOMs) face severe financial distress. This is primarily caused by high Transmission and Distribution (T&D) losses (often termed Aggregate Technical and Commercial losses), which include power theft and technical inefficiencies. Additionally, wrong pricing policies, such as cross-subsidization and supplying electricity at rates below the cost of production (especially to the agricultural sector), contribute to mounting losses.
- Statement 3 is Correct: Thermal power plants, which account for the majority of India's installed capacity, frequently face shortages of raw material, specifically coal. Issues related to domestic coal production, allocation of coal blocks, and logistical bottlenecks in transportation often lead to critical fuel stock levels at power plants.
Key Takeaway:
The primary bottlenecks in India's power sector are the financial insolvency of distribution companies (due to T&D losses and irrational pricing), fuel supply constraints for thermal plants, and the need for capacity expansion to support high economic growth.