Assessing Power Sector Reforms in India: Regulatory Performance, Distribution Stress and Reform Pathways
Keywords:
Power sector reforms, Electricity regulation, Distribution utilities, Tariff policy, Energy transition, Indian Energy Sector, Electricity Act 2003Abstract
India’s power sector has evolved through successive phases of state-led development, market-oriented reforms, and regulatory restructuring, culminating in the Electricity Act, 2003. While regulatory reforms have enabled significant progress in generation capacity expansion, grid integration, renewable energy deployment, and electricity access, persistent challenges remain in distribution sector performance, tariff rationalization, subsidy dependence, and regulatory effectiveness. This paper critically examines the evolution and outcomes of power sector reforms under regulatory control in India, with a focused assessment of distribution sector stress, contemporary operational challenges, and emerging structural shifts driven by decentralization, digitalization, and changing consumer roles. Drawing on policy analysis and sectoral experience, the study identifies gaps between reform intent and outcomes and proposes a concise, integrated reform framework centered on financial sustainability, regulatory governance, pricing correction, and adaptive implementation. The paper contributes policy-relevant insights for strengthening the power sector’s role in supporting India’s long-term economic growth and energy transition.
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Copyright (c) 2026 Lukesh Dhangaonkar, Dr. Mahadeo Narlawar (Author)
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