The Indian power sector can be said to be at cross roads. The policies and practices in power sector since independence, which have not undergone major reviews, have led to many serious problems from economic, social, environmental, and inter-generational perspectives. The power sector has come to be known as a major hurdle in achieving the desirable level of socio-economic development. While electrical power is being clearly associated with human development index, the sector as a whole also has lead to many issues from social and environmental perspective so much so that a lot of debate is ongoing across the world to make it people friendly and environmentally safe. The fast evolving Climate Change threats have made it imperative to review the sector urgently and holistically so as to make it suitable to address the multiple challenges of the fast changing modern society.