Power sector inefficiency: economic & legal implications

Installed electricity generating capacity has grown phenomenally from about 1,400 MW in 1948 to about 157,000 MW in Feb 2010; an increase of 110 times. Annual electricity generation from all sources has increased from about 61,000 MU in 1970-71 to 724,000 MU in 2008-09 an increase of 12 times in 30 years. The national per capita consumption has gone up from 238 kWH in 1989-90 to about 660 kWH in 2009, an increase of more than 2.5 times in 20 years. Despite such phenomenal increases in capacity since independence, about 40% of rural households are still deprived of electricity connection, and various forms of electricity crises are continuing even after 6 decades of self rule. An overview of the power demand and supply in the country during the last 10 years indicate that the deficits experienced is more in the form of peak hour demand / supply scenario than in annual energy supply scenario. It is well known that the peak hour demand issues can be satisfactorily resolved but it requires sustained and determined efforts