Though the targets set were not met, the last two decades — particularly the later one — were marked by some revival of investor interest in the power industry, especially in the generation sector.

The momentum, however, was partly lost in 2012 as fuel shortages and political arm-twisting led to inadequate pass-through of costs, denting investors' confidence. Incidence of payment defaults by distribution firms worsened the financial position of generation firms, forcing the Centre to announce another massive bailout package for the sector, involving a recast of outstanding debts of R1.9 lakh crore.