| The reforms in Indian power sector are still in progress | | | | killed the motivation of managers of public sector to |
| and renewable energy sources are being given their | | | | check thefts. Grants also restrict their incentive to |
| fair share of promotion. The policies to increase the | | | | avert blackouts and to maintain power lines, all works |
| role of renewable in power generation are still at a | | | | done better by private players. Privatization of SEBs |
| nascent stage in the Indian power sector. | | | | has saved the subsidies of government (almost 1.5% |
| The central government laid the foundation stone of | | | | of GDP) and indebted the managers to upgrade their |
| reforms in 1991 when it introduced the policy to | | | | operational and financial performance. |
| liberalize the power sector and promoted private | | | | Introduction of the open access system is the latest |
| investments in the sector. The initial focus of the policy | | | | development in electricity sector of India. Many state |
| was on the power generation. | | | | electricity boards and power distribution companies are |
| The Indian Ministry of Non-conventional Energy | | | | buying electricity from power rich states. |
| Sources has an aim to raise the share of renewables | | | | As India has signed the nuclear deal with US and deal |
| in power generation to 10%, i.e. 10000 MW, by 2012. A | | | | with France underway, India's energy generation |
| lot of incentives are being given to promote | | | | capacity will increase largely. The efforts to secure |
| renewables. | | | | gas resources as another option to conventional |
| The Indian electricity sector is an example of | | | | sources have also gained momentum in recent past. |
| government inefficiency. State Electricity Boards that | | | | Hence, India is looking forward to have a bright future |
| are owned by government suffers lose of 30-40% of | | | | by investing and planning heavily in power sector. The |
| power, mainly due to thefts, whereas the loss of | | | | movement has been initiated with the privatization and |
| private power distributors is about 10%, mainly due to | | | | capturing of various energy resources for electricity |
| technical faults. Government grants and perversion has | | | | generation. |