In India, mainly the State Electricity Boards have been entrusted with the vast task of generation, transmission and distribution of electricity within the states in the most efficient and economical manner. Although it is intended that the state electric board (SEBs) should work as a viable commercial undertakings earning a small profit after completing its expenses, for various reasons in real practice, SEBs is not able to work like this. Different acts made for electricity regulation in India, on electric boards, throwing social obligations to absorb the economic operation of the rural and tribal areas. Along with this, they are expected that not only enough, reliable and good quality power supply but also run the boards in the most effective and economic way. The respected responsibilities of the above responsibilities are done by state electric boards, seeing that the related board walks on the sound commercial principles and commercially viable units. However, except for some exceptions, most of the boards are running in a very technical and commercial deficit. Consequently, the financial performance of various SEB is very bad. An analysis of any SEB can be done under two factors such as operating performance and financial performance; Mainly evaluation of financial performance can be done under consideration of consumers, patterns of power consumption, revenue receipts and expenditures, work results and financial status, money flow analysis, tariff structure and subsidy etc. Apart from some, the boards have been made significant improvement in the operational performance. However, financial performance shows negative returns or unsatisfactory. In a period, SEB‟s financial work results in India make a depressive reading. Therefore, research was taken to analyze the mainly responsible factors for poor financial performance of Rajasthan Rajya Vidhyut Utpadan Nigam limited (RRVUNL). This study is mainly designed to analyze the factors responsible for poor financial performance of Rajasthan Rajya Vidhyut Utpadan Nigam limited and to provide consumers affordable and reliable power supply, whether state electricity boards have taken social obligations that the power supply in rural areas is financially weak section of society other than financial obligations. Ultimately, an attempt has been made to suggest suitable policy decisions to improve the RRVUNL‟s financial performance in India.

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Keywords: Performance, Operating, Responsible, Liquidity, Profitability, Sustained, Domestic, Financial.