Power Sector Policies and New Electricity Bill

The Draft Electricity Bill 2000 aims to introduce far-reaching reforms in the power sector curtailing the state's role drastically. However, the author argues, major experiments with deregulation elsewhere in the world have dismally failed, with the small consumer bearing the brunt. The objectives of India's power sector policy before the reform period are still valid and should form the basis for any reforms. There can be no free market in electricity when there are shortages. Instead, the emphasis should be on strengthening the grid, integrating power systems better and making the best use of installed capacities.