1. The electricity distribution sector in India is financially troubled, with most utilities incurring large losses and high technical and commercial losses. State governments provide large subsidies to offset these losses, totaling nearly Rs. 3,00,000 crores across India as of 2013. 2. In contrast, privatization of distribution in Delhi has led to dramatically lower losses and subsidies. Losses have been reduced from around 55% in 2002 to 11-15% currently through infrastructure upgrades and new technologies. Lower losses have saved the state government around Rs. 36,000 crores. 3. Lower losses have also benefited consumers by allowing tariff increases to be kept much lower than the increases in power purchase costs. Without loss reductions