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Power Sector Reform: Key to Economic Growth

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  • R. V. Shahi

Abstract

Electricity Industry has worked for over 50 years with a set framework of organisation and regulation. The growth till 1990 witnessed a pattern of doubling the capacity in energy decade except in the decade of Nineties. The pace of expansion declined sharply in last ten years. The present status of the Power Sector is far from being satisfactory. Huge transmission and distribution losses coupled with totally improper tariff structure have led to substantial gaps between cost of supply and tariff and much more so between cost of supply and revenue. De-Politiciation of tariff formulation and proper regulation of utilities was considered to be one of the first few essential requirements to set things in order. The Ministry of Power, Government of India has taken a number of important initiatives in the recent past. The Electricity Bill 2001 is perhaps the most important initiative of the Ministry of Power. The steps that have been taken now to bring about reform and restructuring of tariff, removal of imbalances, elimination of gaps between cost of supply and revenue would strengthen the industry commercially and financially.

Suggested Citation

  • R. V. Shahi, 2003. "Power Sector Reform: Key to Economic Growth," Vision, , vol. 7(1), pages 1-8, January.
    • Handle: RePEc:sae:vision:v:7:y:2003:i:1:p:1-8
    DOI: 10.1177/097226290300700101
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