Private Participation in the Indian Power Sector : Lessons from Two Decades of Experience

This book reviews the major developments in and the lessons learned from the 21-year (1991-2012) experience with private sector participation (PSP) in the power sector in India. It discusses the political economy context of the policy changes, look...

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Bibliographic Details
Main Author:	Mukherjee, Mohua
Format:	Publication
Language:	English en_US
Published:	Washington, DC: World Bank 2014
Subjects:	ALTERNATIVE ROUTE AMORTIZATION AMOUNT OF POWER ANNUAL REVENUE REQUIREMENT APPROACH ARREARS AUCTION AUCTIONS AVAILABILITY BAILOUTS BANK CREDIT BANKING CRISIS BANKING SECTOR BANKING SECTOR STABILITY BANKING SYSTEM BENEFICIARY BID BIDDING PROCESS BIDS BLACKOUTS BOTTOM LINE BROWNOUTS BULK POWER CAPACITY CHARGES CAPACITY UTILIZATION CAPITAL EXPENDITURE CASH FLOW CHECKS COAL COMMERCIAL BANK COMMERCIAL BANK LOANS COMMERCIAL BANKING COMMERCIAL BANKS COMMERCIAL CONTRACTS COMMERCIAL LENDERS COMPETITIVE BIDDING COMPETITIVE BIDDING PROCESS COMPETITIVE PROCUREMENT CONCESSION CONSUMPTION OF ELECTRICITY CONTRACT MANAGEMENT CONTRACTUAL OBLIGATIONS COST OF POWER COSTS OF POWER CREDIT RATING CREDIT RATING AGENCIES CREDIT WORTHINESS CREDITWORTHINESS CURRENT ACCOUNT DEFICIT CUSTOMER SATISFACTION CUSTOMER SERVICE DEBT DEFICITS DIESEL DISCOS DISTRIBUTION AREAS DISTRIBUTION COMPANIES DISTRIBUTION FACILITIES DISTRIBUTION LOSSES DISTRIBUTION NETWORK DISTRIBUTION PRIVATIZATION DIVESTITURE DOMESTIC COAL ECONOMIC GROWTH ELECTRIC POWER ELECTRIC SUPPLY ELECTRICITY ELECTRICITY DISTRIBUTION ELECTRICITY GENERATION ELECTRICITY GENERATION CAPACITY ELECTRICITY SECTOR ELECTRICITY SUPPLY EMISSIONS END USERS ENERGY MARKETS ENERGY SHORTAGES ENERGY SUPPLY EXCESS POWER FINAL CUSTOMERS FINANCES FINANCIAL CLOSURE FINANCIAL CRISIS FINANCIAL HEALTH FINANCIAL OBLIGATIONS FINANCIAL PERFORMANCE FINANCIAL RETURNS FINANCIAL VIABILITY FIXED COSTS FOREIGN LENDERS FOSSIL FOSSIL FUEL FRANCHISEES FUEL FUEL COST FUEL COSTS FUEL PRICES FUEL SUPPLY GENERATION GENERATION ASSETS GENERATION BUSINESS GENERATORS GOVERNMENT COMPENSATION GOVERNMENT OWNERSHIP GOVERNMENT SUPPORT GRIDS GROSS DOMESTIC PRODUCT GROWTH IN DEMAND GROWTH IN DEMAND FOR ELECTRICITY HEAT HEAT RATE HOLDING HOUSEHOLD SAVINGS INDEPENDENT POWER PRODUCERS INFLATION INFORMATION TECHNOLOGY INFRASTRUCTURE DEVELOPMENT INFRASTRUCTURE SECTOR INTERNATIONAL BANK INTERNATIONAL BANKS INTERNATIONAL INVESTORS INVESTMENT TARGETS INVESTOR UNCERTAINTY ISSUANCE JOINT VENTURE JOINT VENTURES KILOWATT-HOUR KILOWATT-HOURS LARGE CONGLOMERATES LARGE CUSTOMERS LEGAL FRAMEWORK LNG LOW TARIFFS MARKET SHARE MICROFINANCE MOBILE PHONE NATURAL GAS OPEN ACCESS OUTSOURCING PAY CLAUSES PAYMENT SYSTEMS PEAK DEMAND PERCENT RATE OF RETURN POLITICAL ECONOMY POTENTIAL INVESTORS POWER POWER COMPANY POWER CONSUMPTION POWER CONTRACTS POWER CORPORATION POWER COSTS POWER DEVELOPMENT POWER DISTRIBUTION POWER GENERATION POWER GRID POWER PLANT POWER PLANTS POWER PROCUREMENT POWER PRODUCER POWER PRODUCERS POWER PROJECT POWER PROJECTS POWER PURCHASE POWER PURCHASE AGREEMENTS POWER PURCHASES POWER REQUIREMENTS POWER SECTOR POWER SECTOR REFORM POWER SECTORS POWER SHORTAGES POWER SUPPLIERS POWER THEFT POWER TRANSMISSION PRICE DISCOVERY PRICE INCREASES PRIVATE CAPITAL PRIVATE INVESTMENT PRIVATE INVESTOR PRIVATE INVESTORS PRIVATE PARTIES PRIVATE PARTY PRIVATE SECTOR GENERATION CAPACITY PRIVATE SECTOR PARTICIPATION PROBABILITY OF DEFAULT PUBLIC SAVINGS PUBLIC SECTOR PUBLIC SECTOR BANKS PUBLIC SECTOR ENTITIES PUBLIC SUBSIDIES PUMPING PURCHASING POWER REGULATORY FRAMEWORK RELIABILITY OF SUPPLY RENEWABLE ENERGY RENEWABLE ENERGY TECHNOLOGY RESERVE RESERVE BANK RESIDENTIAL CUSTOMERS REVENUE COLLECTION REVENUE SHORTFALLS REVERSE AUCTION REVERSE AUCTIONS RISK TOLERANCE RURAL ELECTRIFICATION SANITATION SECTOR SOLAR ENERGY SOLAR POWER SOLAR PROJECTS SOLAR THERMAL STATE UTILITIES STOCK MARKET STOCK MARKET BUBBLE TARIFF STRUCTURES TAX TAX COLLECTIONS TENDERS THERMAL POWER TRANSMISSION GRID TRANSMISSION LINE TRANSMISSION LINES TRANSPARENCY UTILITIES WIND WINNING BIDDERS
Online Access:	http://documents.worldbank.org/curated/en/2014/10/20274155/private-participation-indian-power-sector-lessons-two-decades-experience http://hdl.handle.net/10986/20410

Description
Summary:	This book reviews the major developments in and the lessons learned from the 21-year (1991-2012) experience with private sector participation (PSP) in the power sector in India. It discusses the political economy context of the policy changes, looks at reform initiatives that were implemented for the generation sector, describes transmission and distribution segments at different points in the evolution of the sector, and concludes with a summary of lessons learned and a suggested way forward. The evolution of private participation in the Indian power sector can be divided into different phases. Phase one was launched with the opening of the generation sector to private investment in 1991. Phase two soon followed - early experiments with state-level unbundling and other reform initiatives, including regulatory reform, culminating in divestiture, and privatization in Orissa and Delhi respectively. Phase three, the passage of the electricity act of 2003 by the central government, followed by a large increase in private entry into generation and forays into transmission and experiments with distribution franchise models in urban and rural areas during the 11th five-year plan (2007-12) period. In phase four, at the start of the 12th five-year plan (2012-17), the sector is seeing a sharp reduction in bid euphoria and greater risk aversion on the part of bidders, who are concerned about access to basic inputs such as fuel and land. In this context, the report is structured as follows: chapter one gives introduction; chapter two presents private sector participation in thermal generation; chapter three presents private sector participation in transmission; chapter four deals with private sector participation in distribution; chapter five deals with private sector participation in the Indian solar energy sector; chapter six deals with financing of the power sector; chapter seven presents emerging issues and proposed approaches for the Indian power sector; and chapter eight give updates.

Private Participation in the Indian Power Sector : Lessons from Two Decades of Experience

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