Power sector reforms and restructuring in India

The need for restructuring the power sector was felt due to the scarcity of financial resources available with Central and State Governments, and necessity of improving the technical and commercial efficiency. Electricity Act 2003 has come into force from June 2003. As the act allows third party sales, it introduces the concept of trading bulk electricity. The act also provides open access to transmission as well as distribution of electricity. Some of the important issues addressed by this Act and their impact on power system restructuring are discussed in this paper.