Power Reforms

Powerful Essays
KESCO DREAM PROJECTS

FEW E-GOVERNANCE INTIATIVES
FOR EFFECTIVE MONITORING AND
CONSUMER SATISFACTION

CONCEPT BY
RITU MAHESHWARI
IAS
MD KESCO

Electricity is central to achieving economic, social and environmental objectives of sustainable human development. In fact it has become essential ingredient for improving the quality of life and its absence is usually associated with poverty and poor quality of life. India has the fifth largest generation capacity in the world with an installed capacity of 173,626 MW as in March 2011. The power sector added record conventional capacities of 12,160 MW during 2010-11. However, despite the Indian power sector having shown substantial growth during the post-independence era, the sector has been ailing from serious functional problems during the past few decades. In 2010-11, India faced power deficit of 10 per cent and peak demand shortage of 13.3 per cent. In this backdrop, Power sector reforms were first initiated in India in 1992 by the Ministry of Power (MoP) to invite private investments in power generation to bridge the demand-supply gap. However, private investments failed to yield much benefit due to serious deficiencies and losses in electricity distribution in most of the State Electricity Boards (SEBs). Post 2001, Reforms were oriented around:-
1. Unbundling of the state electricity boards.
2. Corporatization of generation, transmission and distribution sector
3. Setting up of independent central and state electricity regulatory commissions.
4. Passing of the Electricity Act, 2003 which mandates licensee-free thermal generation, non-discriminatory open access of the transmission system and gradual implementation of open access in the distribution system which will pave way for creation of power market in India.
In the power sector reform process, Distribution segment was identified as the key area for reform for putting the sector on the right track. Distribution Reforms involve System

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