Issues and challenges in electricity sector in India

Over the past 60 years or so, India has taken rapid strides in the development of the electricity sector both in terms of enhancing power generation as well as in making power available to widely distributed geographical boundaries. In order to meet the increasing demand for electricity, to fuel the economic growth of the country, large additions to the installed generating capacity and development of associated transmission and distribution network are required. However, during the past, the power sector was perceived to be riddled with some fundamental weaknesses, which necessitated initiation of the reform process in the Sector. Even though a number of policy initiatives have been put in place, the task of transforming the power sector is yet to be achieved. This paper highlights and quantifies some of these gaps and attempts to analyze the problem. The paper builds on the risks prevalent in the industry, some prominent hurdles that the power sector has already crossed, and more importantly others that have to overcome. The researcher has tried to provide some solution framework to overcome from the various issues and challenges in this sector.