Consider the following causes of the financial weakness of State Electricity Boards in India— I. Sale of electricity to agricultural and domestic consumers at prices lower than the cost of production. II. High transmission and distribution losses. III. Lack of commercial autonomy of State Electricity Boards. IV. Implementation of social subsidy policies through State Electricity Boards by state governments. Which of the above are correct?

Explanation

State Electricity Boards in India suffer from several weaknesses and face many difficulties, such as managerial inefficiencies, shortage of financial resources, inability to make payments to public sector undertakings, and high transmission and distribution losses. In many states, electricity is supplied to the agricultural sector at very low prices, which substantially increases the subsidy burden. Transmission and distribution losses are relatively high due to electricity theft, low-voltage supply, provision of electricity in remote and sparsely populated areas, and inadequate investment in the distribution system.