Power is the backbone of economic growth for any country. The economic growth over the last decade has been supported by a robust growth in the power sector in India. Continued economic growth would require further investment in the sector which can only be possible through increased private sector participation. The Electricity Act 2003, set the ball rolling for reforms in the power sector. Over the last decade the government has launched several key reform measures /initiatives like RGGVY, R-APDRP, tariff based bidding, open access, power trading, renewable energy capacity addition, PPP in Transmission, faster clearances at various ministries etc. Despite continued efforts, the sector is facing challenges like high AT&C losses, surmounting financial burden on discoms, frequent payment defaults by some discoms and inadequate coal availability.
This report highlights the current state of the Indian power sector, it’s expected growth and the key challenges. The study also provides a snapshot of the power sector in each of the states/UT in the Northern region. It compares these states on aspects like AT&C losses, ability to pay for power purchase and the gap between Average Cost of Supply and Average Revenue Realized. It also draws to attention the policy and reform measures being taken by the government along with their status. Finally the report discusses the key reform measures being envisaged to revive the sustainability of the sector.