According to reports, power tariff reforms have been a topic of discussion in India for some time now. The financial loss of power distribution is a staggering Rs1,20,000 crore, or nearly 1.5% of our GDP. The world’s largest blackout on July 30-31 indicates that the sooner reforms are implemented the better it is for the country. Reform does not mean just revision of power tariff, but requires inclusive measures, including a thorough overhaul of technology with inbuilt safety measures to tackle unforeseen situations.
First, let me explain how the national grid failure occurred.
Electricity flows through a series of substations after being generated in a power plant and goes to power substations that scale down the high voltage to levels suitable for consumption. A frequency of 50 Hz is maintained by balancing supply and demand by a load management system. The frequency falls or rises if a state draws more…
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