It was interesting to note that the all-India peak load factor of the electricity sector for October was about 54 per cent. This in a country that suffers from chronic power shortages. The main reason cited by power generators is a "back-down" in power purchases by the state electricity boards (SEBs). The cause of that back-down appears to be the strict implementation of the financial restructuring package designed for them by the Centre, whereby they are now forced to live within their means. Does this mean that perhaps the Centre made a mistake in pushing through financial reforms of these SEBs without requiring a commensurate and simultaneous imposition of distribution reform, i e checking theft? Indeed, has the power reform process itself backfired? And has the financial risk of India's power woes now been transferred from the SEBs to the private-sector power generators?
Rohan Soares Mumbai
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