Plight of Power Sector in India-II: Financial Performance of SEBs

The unaccountability of state Electricity Boards (SEBs) in India has led to gross inefficiency at all levels. This article examines significant aspects of inefficiency costs involved in SEBs functioning. Part I of this article, published last week, dealt with physical performance focusing on such aspects as technical inefficiency, T and D losses, its possible underestimation, as well as some aspects of institutional and organisational inefficiency. Part II deals with the supply cost of electricity, tariff and revenue, as well as financial performance.