Power sector reform in Maharashtra, India

In early 1990 the power sector in India required an initial set of reforms due to the scarcity of financial resources and its deteriorating technical and commercial efficiency. The Indian power sector is now going through a second stage of reforms in which restructuring of electric supply utilities has taken place. The Maharashtra State Electricity Board (MSEB) initiated reforms in 2005 by dividing the state electricity board into four separate companies. In this paper, the situations that led to the reform of the MSEB and the scope of the work required for an action plan initiated by the state electricity distribution company in the context of the proposed Key Performance Index are discussed. The post-reform status of the distribution company is analyzed with selected key parameters. The study also analyzes the electricity supply model implemented and the effect of a multi-year tariff plan as one of the key milestones of the tariff structure. The various new projects implemented by the distribution company to improve consumer services and the reform experiences of the other states are discussed, along with the future scope of the present reform process.