Power Sector Reforms, Strategies, and Contribution of Private Sector

Abstract

Power is a fundamental necessity for all walks of life and has been perceived as a fundamental human need. Indian power area is seeing real changes. Nonetheless, the interest for control has been overwhelming the development of accessibility. This is because of deficiencies in Generation, Transmission & Distribution and in addition wasteful utilization of power and shortage of financing. High level of specialized and business misfortunes and absence of business approach in the administration of utilities has prompted unsustainable monetary activities. According to Census 2001, around 44% of the families do not approach power. Power Act, 2003 gives an empowering structure to quickened and more effective improvement of the power part. The paper has been organized as follows. In the introductory section, we provide a brief background of the key issues facing the Indian power sector. In the section on the global experience in power sector reform, we discuss the key initiatives in the areas of reforms in other developing countries and what broad lessons can be learnt. Some of the key issues of the debate about privatization and its potential benefits and drawbacks are dealt in the section on way forward for the Indian power sector. In the concluding section, we try and identify some of the “Best Practices” available from the global experience in power sector reform to draft innovative solutions for the Indian power sector.