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India’s energy sector is in crisis. This crisis is due to collectivism. While India possesses the fifth largest coal reserves in the world, coal is only procured by a state-owned monopoly which continually fails to boost output. To make it worse, the coal is in turn used by publicly-run companies who produce the power and distribute it. Often, these companies are bankrupt and run at a significant deficit, which in turn is passed on to the urban consumer through higher tariffs. One other problem that also affects this is that coal suppliers are often sidelined with delays in getting environmental clearances to mine this resource.
At the same time, government grants free electricity to farmers and many politicians are reluctant to do away with these grants, which ultimately drains  the power companies and leave them in a state of mounting debt.
Another problem affecting the coal industry is that it is riddled with trade unionism and gangs who steal coal, including employees who collude to steal the fuel. This is while state power boards that operate the grid, usually lose about a third of all the power generated to theft and another third is lost to rural customers who pay subsidised prices or get their power for free.
The State Electric Boards that run India’s power system have become a laughing stock and are swathed in fiscal red ink. This is largely due to poor bill collection and the persistent practice of state politicians who offer free electricity to farmers. Because of this, most local distribution firms are effectively bankrupt. Primarily, this is due to politicians insisting that big chunks of the population, especially farmers, are to get free power. To top this off, there are many Indians who get away with simply stealing power.