South Asia being an energy-deficit region, there is a strong case for developing regional cooperation in this sector. This may take different forms. India has surplus petroleum refining capacity while other countries in the region are importers of petroleum products. The real benefits will accrue from cooperation in power generation.

The paper deals with the technical and financial performance and the reforms process in the power utility of Punjab. Technical as well as financial performance of the utility has been found unsatisfactory, mainly due to the lack of commercial outlook and unaccountable and unnecessary political interference in the functioning of the utility.