Energy Sector Reforms in India - A Review

M. Aruna and M.G. Raj (India)


Power sector, Reforms, Generation, Transmission, Distribution, Energy.


Indian economy has been growing at a rate of 6-8 % annually during the 10th plan period (2002-07), which requires growth of basic infrastructural facilities at a still higher rate. Power sector is one of the major components of infrastructure development, which requires a growth rate of 9-10 % during the 11th and 12th plan periods (2007–2016). This requires huge amount of investments and restructuring of power sector, for which Government cannot fund the entire amount independently. Hence, private participation is necessary either as an independent venture or through public-private partnership (PPP). Electricity Act 2003 is a step in the direction of reforms by creating an environment for private participation in the generation, transmission and distribution of power in the country. The main aim of this Act is to implement proper steps for efficient and optimum use of energy resources available in India and to supply quality power at good reliability and optimum cost to the Indian consumers. However, one of the major constraints faced by the power sector is the lack of adequate R&D support. This paper attempts to throw a light on present status of Indian power sector with respect to generation, transmission and distribution of electricity.

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