India faces restructuring: The need is with the states
India`s government wants to energize its economy and provide adequate service to industry and its nearly one billion people, but the long term need for fundamental reform remains largely at the state level. The electric power industry in India has grown from approximately 1,300 MW at national independence in 1947 to approximately 80,000 MW today; its population is some 940 million. By contrast, the six New England states, with a combined population of about 13 million, have approximately 25,000 MW of installed capacity. However one describes it, by the standards of an industrialized society India has great need to develop its electricity sector. Unfortunately, India also has limited financial resources. For example, per capita income (gross domestic product) in 1994 was roughly $300, or $1,300 in purchasing power equivalent, as compared with close to $26,000 in the United States. It is widely recognized that, despite much progress in India in the creation of important new institutions and economic liberalization, the electricity sector is in difficult straits. The intent of this article is to address some of the problematic issues associated with the power sector in India and the changes that appear to be required to remedy them. The focus of the article is on the need to restructure and fundamentally reform the power sector. The paper will describe some of the key elements of such a program. The author focuses in part on the state of Orissa, on India`s east coast, which has initiated a major reform program and is an interesting example of the magnitude and complexity of the required effort.
- OSTI ID:
- 457104
- Journal Information:
- Electricity Journal, Vol. 9, Issue 2; Other Information: PBD: Mar 1996
- Country of Publication:
- United States
- Language:
- English
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