The Power Finance Corporation has reported that the aggregate technical and commercial (AT and C) losses of discoms have gone up from 20.7 percent in 2019-20 to 22.3 percent in 2020-21. The AT & C estimate gives us an idea of the losses a distribution company (discom) faces in its line of business. In layman's terms, if discom has received 100 units of power, the AT & C figure will tell us how many units are not recovered in terms of revenue. So, a figure of 25 per cent would mean that for every 100 units of power fed into the discom, 25 units are not recovered. Consequently, the discom has to operate with a recovery of only 75 units. Broadly, the losses in the system comprise technical losses and commercial losses, the latter largely implying theft. Some technical losses are inevitable in a distribution system but these can vary a lot across discoms (roughly between 4 to 12 per cent) depending on the technology adopted, the condition of the distribution infrastructure etc. Commercial losses are due to meters not being read, faulty meters, meters being manipulated or bypassed etc. The Indian distribution system has always faced high AT & C losses (in excess of 30 per cent in the early 2000s) which drains the discoms financially and makes then economically unviable.
Which among the following are likely to be the technical losses of discoms?
A. 5%
B. 20%
C. 11%
D. 8%
Choose the correct answer from the options given below:
A, C and D only
This question tests careful reading of the specific range the passage gives for technical losses (as distinct from total AT&C losses).
The passage states: 'Some technical losses are inevitable in a distribution system but these can vary a lot across discoms (roughly between 4 to 12 per cent) depending on the technology adopted, the condition of the distribution infrastructure etc.' So, according to the passage, purely technical losses typically fall within a 4% to 12% band.
Now check each value: A. 5% — falls within 4-12%, so plausible as a technical loss figure. B. 20% — falls well outside the 4-12% band; a figure this high is closer to the scale of overall AT&C losses mentioned in the passage (20.7% in 2019-20, 22.3% in 2020-21), not a purely technical loss. C. 11% — falls within 4-12%, so plausible. D. 8% — falls within 4-12%, so plausible.
So only A, C, and D fit within the passage's stated range for technical losses, while B (20%) is too high to be a technical loss figure alone.
Therefore, the correct answer is A, C and D only.
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