Reforms initiated in the Indian power industry in the early nineties failed to achieve their objectives. In 2002, after a decade of reforms, the status of the power industry remains more or less same as in the early nineties. This study finds that the poor financial condition of State Electricity Boards (SEBs) is the main reason for this failure. This is because of three reasons, namely, subsidies, poor plant load factor and high Transmission and Distribution (T&D) losses. Failures in power industry reforms are common even in well developed economies, and after learning the lesson, the Government of India is redirecting reform efforts. It is encouraging the state governments to reform the SEBs and taking steps to reduce the T&D losses. Electricity Bill, 2003, is another major step in this regard. This time the government cannot afford to make mistakes as the country needs to double the power generation capacity by 2012.
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Volume (Year): I (2004) Issue (Month): 4 (November) Pages: 47-55 Download reference. The following formats are available: HTML
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Handle: RePEc:icf:icfjie:v:01:y:2004:i:4:p:47-55
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