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what they could do to avoid this losses and to compete with the state electricity?

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The State Electricity Boards were selling electricity for as much as 50 percent below cost,
with the agricultural sector paying rates as little as 20 percent of the rate charged to
industries. Seventy-five percent of the Indian population is rural, and the agricultural sector
consumes 30 percent of the electricity generated in India. The power industry employs about
1.7 million people for an over-staffed ratio of 21 personnel per megawatt of capacity. As a
result, the accumulated losses of the public power sector in 1996 stood at US. $6.4 billion.

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