Karthik Ganesan, Abhishek Jain, Sudatta Ray, Mohit Sharma, Arunabha Ghosh
December 2014 | Power Markets
Suggested Citation: Karthik Ganesan, Abhishek Jain, Sudatta Ray, Mohit Sharma, and Arunabha Ghosh. 2014. Agenda for a Reformed Power Sector in India: Risk, Resource, Relay, and Restructuring. New Delhi: Council on Energy, Environment and Water.
This policy brief deep dives into India’s power sector and provides an overview of the issues that have necessitated reforms in the sector. It identifies four key areas that needed attention: the risks entailed in banks’ exposure to the power sector; the resource crunch i.e. limited availability and low quality of coal supplies; the challenges in operationalising open access in the transmission of electricity; and the eventual imperative of restructuring power distribution companies (DISCOMs), improving the state of their finances and the efficiency of their operations. Further, it provides a time-bound suite of recommendations, which may set future developments on the right course.
Source: CEEW analysis
Challenges in fuel supply
Challenges to open access
Source: CEEW analysis based on IEX & PXIL reported data
Poor financial health of DISCOMS
The extent of commercial losses of DISCOMS across India increases by over 50 per cent in the absence of subsidy.