Step 1: Understanding the Concept:
Power is a critical infrastructure for economic growth, but India's power sector faces several structural and operational issues.
Step 2: Detailed Explanation:
Three major challenges are:
1. Insufficient Installed Capacity: Although the capacity has increased over time, it is still not enough to meet the growing demand from industry and households, leading to frequent power cuts in several regions.
2. Transmission and Distribution (T and D) Losses: India has one of the highest rates of power loss during transmission from the source to the end-user. This is caused by technical issues and theft (power pilferage).
3. Poor Financial Health of State DISCOMs: Most state-run distribution companies (DISCOMs) are in heavy debt. This is due to subsidized pricing for agriculture, low collection efficiency, and high operational costs, which prevents them from investing in modernizing the grid.
Step 3: Final Answer:
The key challenges include the gap between demand and supply, technical and commercial losses, and the bankruptcy of distribution companies.