India's Power Sector: Alternative To World Bank Prescriptions

Abstract

India's Power Sector: Alternative To World Bank Prescriptions

Abridged Version of the Paper discussed in the Workshop on Power Industry held at Delhi on April 25 and 26, 1992

The fundamental policy objective in the power sector should be to ensure supply of quality electricity in adequate measure at minimum costs and maximum benefits to the national economy in the given situation. Any programme that defeats this objective is against national interests.

The Government of India has initiated several policy changes recently by amending the electricity act-1948 and through several executive orders. It has 'modified the financial, administrative and legal environment in the power sector in order to widen the scope of private (especially foreign) investments'. Schemes drawn up with this objective are being vigorously pursued by the Government. These policy changes and programmes are justified by the Government as inevitable because of a "serious resource crisis."

This paper evaluates the recent policy changes and programmes in the power sector from the above said policy perspective and examines possible alternatives under the prevailing circumstances. It was prepared on the basis of the findings of a study commissioned by NCOA, EEFI and AIFEE jointly with their affiliate unions.