The World Bank has painted a bleak picture of the Indian power sector. It has put together worrisome findings in its report on the performance of distribution companies (discoms), state electricity regulators and central public sector undertakings (PSUs).
Key reforms mandated by the Electricity Act have not been implemented, corporatisation has been unable to shield utilities from state interference, regulators have not pushed utilities to improve performance and mounting regulatory assets have increased the discoms’ cash-flow problems, said the report More power to India: The challenge of distribution.