Beyond Crisis : The Financial Performance of India's Power Sector
At the end of 2011, the Indian power sector found itself in financial crisis, just a decade after the 2001 bailout of state electricity boards (SEBs) by the central government. Bankrupt state power distribution utilities in several states were unab...
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| Format: | Publication |
| Language: | English en_US |
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Washington, DC: World Bank
2014
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| Online Access: | http://documents.worldbank.org/curated/en/2014/11/20364772/beyond-crisis-financial-performance-indias-power-sector http://hdl.handle.net/10986/20527 |
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okr-10986-20527 |
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| recordtype |
oai_dc |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
ACCESS TO ELECTRICITY ACCOUNTING ADVERSE IMPACTS AFFORDABLE PRICES AGRICULTURE AMOUNT OF POWER APPROACH ARREARS AVAILABILITY BAILOUT BALANCE BALANCE SHEET BENCHMARK BENCHMARKING BIDS BILATERAL TRANSACTIONS BUSINESS MODELS CAPABILITIES CAPACITY PLANNING CAPITAL ADEQUACY CAPITAL EXPENDITURES CASH FLOWS COAL COAL CONSUMPTION COAL PRODUCTION COLLECTION EFFICIENCY COMMERCIAL BANKS COMPETITIVE BIDDING COMPETITIVE MARKETS COMPETITIVE POWER MARKETS COMPETITIVE PRICES COMPETITIVE PROCUREMENT COMPOSITION OF DEBT CONSUMERS COPYRIGHT COST ASSUMPTIONS COST OF POWER COST RECOVERY CREDITORS CUSTOMER RELATIONS CUSTOMER SATISFACTION CUSTOMER SERVICE DEBT DEBTOR DEBTS DEFICITS DEMAND FOR ELECTRICITY DEMAND FOR ENERGY DEMAND FOR POWER DEVELOPMENT FINANCE DISTRIBUTION COMPANIES DISTRIBUTION LOSSES DISTRIBUTION OF ELECTRICITY DISTRIBUTION OPERATIONS DOMAIN DOMESTIC COAL ECONOMIC GROWTH ECONOMIES OF SCALE EFFICIENCY IMPROVEMENT EFFICIENCY IMPROVEMENTS EFFICIENT POWER PROCUREMENT ELECTRIC POWER ELECTRICITY ELECTRICITY CAPACITY ELECTRICITY DISTRIBUTION ELECTRICITY GENERATION ELECTRICITY SECTOR ELECTRICITY SUPPLY ENERGY CONSUMPTION ENERGY EFFICIENCY ENERGY GENERATION ENERGY SHORTAGE FINANCES FINANCIAL CRISIS FINANCIAL DISTRESS FINANCIAL INSTITUTIONS FINANCIAL PERFORMANCE FINANCIAL SUPPORT FINANCIAL VIABILITY FISCAL DEFICIT FIXED COSTS FOREIGN EXCHANGE FOREIGN INVESTORS FUEL FUEL COSTS FUTURE DEMAND GAS GDP GENERATION GENERATION CAPACITY GOVERNMENT BONDS GOVERNMENT BUDGETS GOVERNMENT POLICIES GROSS DOMESTIC PRODUCT GROWTH RATE HEAT HEAT RATE HEAT RATES HUMAN DEVELOPMENT HUMAN RESOURCES HYDROPOWER IMAGES INDEPENDENT POWER PRODUCERS INDEPENDENT REGULATION INEFFICIENCY INFLATION INFORMATION SYSTEMS INFORMATION TECHNOLOGY INFRASTRUCTURE DEVELOPMENT INSTITUTION INSTRUMENT INTEREST COSTS INTEREST PAYMENTS INTERNATIONAL BANK INTERNATIONAL ENERGY INVESTMENT FLOWS KILOWATT HOUR LICENSE LICENSES LIQUIDITY LLC LOAD FACTOR LOAD FACTORS LOAD PROFILE LOAN LOANS FROM BANKS LONG-TERM LOANS MARKET DATA MARKET DEVELOPMENT MARKET REFORM MARKET REFORMS MARKET STRUCTURE MARKET STRUCTURES MONOPOLY MONOPOLY SUPPLIER NETWORK ACCESS NETWORK PLANNING NETWORKS NONPAYMENT NONPERFORMING LOANS OIL OIL CONSUMPTION OPEN ACCESS OPERATIONAL EFFICIENCY OPPORTUNITY COST OUTSOURCING OUTSTANDING LOANS PEAK DEMAND PHOTO POLICY FRAMEWORKS POWER POWER CAPACITY POWER CORPORATION POWER COSTS POWER DISTRIBUTION POWER GENERATION POWER GENERATORS POWER GRID POWER INDUSTRY POWER PLANTS POWER PROCUREMENT POWER PRODUCERS POWER PURCHASE POWER PURCHASE AGREEMENTS POWER PURCHASE COSTS POWER PURCHASES POWER REQUIREMENT POWER SECTOR POWER SECTOR DEVELOPMENT POWER SECTOR REFORM POWER SECTORS POWER SHORTAGE POWER STATIONS POWER SYSTEM PRIMARY ENERGY PRIMARY ENERGY SUPPLY PRIVATE CREDITOR PRIVATE PARTNERSHIP PRIVATE SECTOR PRIVATE SECTOR PARTICIPATION PUBLIC SECTOR QUALITY OF ENERGY QUERIES REGRESSION ANALYSIS RENEWABLE ENERGY RENEWABLE SOURCES RESERVE RESERVE BANK RESULT RESULTS RETAIL MARKETS RETAIL TARIFFS RETURN REVENUE COLLECTION RISK PROFILE RURAL ELECTRIFICATION SENSITIVITY ANALYSIS SHORT-TERM BORROWING SOLVENCY STATE UTILITIES TARGETS TARIFF CHANGES TARIFF REFORMS TARIFF REVISIONS TARIFF STRUCTURE TAX TELEPHONE THERMAL PLANTS THERMAL POWER THERMAL POWER GENERATION THERMAL POWER PLANT TOTAL COSTS TOTAL DEBT TOTAL FACTOR PRODUCTIVITY TRADING TRANSACTION TRANSLATION TRANSMISSION TRANSMISSION LINES TRANSMISSION SYSTEM TRANSMISSION SYSTEMS TRANSPARENCY TURNOVER UNIVERSAL ACCESS UTILITIES VALUE CHAIN VARIABLE COST VARIABLE COSTS WHOLESALE MARKET WIND |
| spellingShingle |
ACCESS TO ELECTRICITY ACCOUNTING ADVERSE IMPACTS AFFORDABLE PRICES AGRICULTURE AMOUNT OF POWER APPROACH ARREARS AVAILABILITY BAILOUT BALANCE BALANCE SHEET BENCHMARK BENCHMARKING BIDS BILATERAL TRANSACTIONS BUSINESS MODELS CAPABILITIES CAPACITY PLANNING CAPITAL ADEQUACY CAPITAL EXPENDITURES CASH FLOWS COAL COAL CONSUMPTION COAL PRODUCTION COLLECTION EFFICIENCY COMMERCIAL BANKS COMPETITIVE BIDDING COMPETITIVE MARKETS COMPETITIVE POWER MARKETS COMPETITIVE PRICES COMPETITIVE PROCUREMENT COMPOSITION OF DEBT CONSUMERS COPYRIGHT COST ASSUMPTIONS COST OF POWER COST RECOVERY CREDITORS CUSTOMER RELATIONS CUSTOMER SATISFACTION CUSTOMER SERVICE DEBT DEBTOR DEBTS DEFICITS DEMAND FOR ELECTRICITY DEMAND FOR ENERGY DEMAND FOR POWER DEVELOPMENT FINANCE DISTRIBUTION COMPANIES DISTRIBUTION LOSSES DISTRIBUTION OF ELECTRICITY DISTRIBUTION OPERATIONS DOMAIN DOMESTIC COAL ECONOMIC GROWTH ECONOMIES OF SCALE EFFICIENCY IMPROVEMENT EFFICIENCY IMPROVEMENTS EFFICIENT POWER PROCUREMENT ELECTRIC POWER ELECTRICITY ELECTRICITY CAPACITY ELECTRICITY DISTRIBUTION ELECTRICITY GENERATION ELECTRICITY SECTOR ELECTRICITY SUPPLY ENERGY CONSUMPTION ENERGY EFFICIENCY ENERGY GENERATION ENERGY SHORTAGE FINANCES FINANCIAL CRISIS FINANCIAL DISTRESS FINANCIAL INSTITUTIONS FINANCIAL PERFORMANCE FINANCIAL SUPPORT FINANCIAL VIABILITY FISCAL DEFICIT FIXED COSTS FOREIGN EXCHANGE FOREIGN INVESTORS FUEL FUEL COSTS FUTURE DEMAND GAS GDP GENERATION GENERATION CAPACITY GOVERNMENT BONDS GOVERNMENT BUDGETS GOVERNMENT POLICIES GROSS DOMESTIC PRODUCT GROWTH RATE HEAT HEAT RATE HEAT RATES HUMAN DEVELOPMENT HUMAN RESOURCES HYDROPOWER IMAGES INDEPENDENT POWER PRODUCERS INDEPENDENT REGULATION INEFFICIENCY INFLATION INFORMATION SYSTEMS INFORMATION TECHNOLOGY INFRASTRUCTURE DEVELOPMENT INSTITUTION INSTRUMENT INTEREST COSTS INTEREST PAYMENTS INTERNATIONAL BANK INTERNATIONAL ENERGY INVESTMENT FLOWS KILOWATT HOUR LICENSE LICENSES LIQUIDITY LLC LOAD FACTOR LOAD FACTORS LOAD PROFILE LOAN LOANS FROM BANKS LONG-TERM LOANS MARKET DATA MARKET DEVELOPMENT MARKET REFORM MARKET REFORMS MARKET STRUCTURE MARKET STRUCTURES MONOPOLY MONOPOLY SUPPLIER NETWORK ACCESS NETWORK PLANNING NETWORKS NONPAYMENT NONPERFORMING LOANS OIL OIL CONSUMPTION OPEN ACCESS OPERATIONAL EFFICIENCY OPPORTUNITY COST OUTSOURCING OUTSTANDING LOANS PEAK DEMAND PHOTO POLICY FRAMEWORKS POWER POWER CAPACITY POWER CORPORATION POWER COSTS POWER DISTRIBUTION POWER GENERATION POWER GENERATORS POWER GRID POWER INDUSTRY POWER PLANTS POWER PROCUREMENT POWER PRODUCERS POWER PURCHASE POWER PURCHASE AGREEMENTS POWER PURCHASE COSTS POWER PURCHASES POWER REQUIREMENT POWER SECTOR POWER SECTOR DEVELOPMENT POWER SECTOR REFORM POWER SECTORS POWER SHORTAGE POWER STATIONS POWER SYSTEM PRIMARY ENERGY PRIMARY ENERGY SUPPLY PRIVATE CREDITOR PRIVATE PARTNERSHIP PRIVATE SECTOR PRIVATE SECTOR PARTICIPATION PUBLIC SECTOR QUALITY OF ENERGY QUERIES REGRESSION ANALYSIS RENEWABLE ENERGY RENEWABLE SOURCES RESERVE RESERVE BANK RESULT RESULTS RETAIL MARKETS RETAIL TARIFFS RETURN REVENUE COLLECTION RISK PROFILE RURAL ELECTRIFICATION SENSITIVITY ANALYSIS SHORT-TERM BORROWING SOLVENCY STATE UTILITIES TARGETS TARIFF CHANGES TARIFF REFORMS TARIFF REVISIONS TARIFF STRUCTURE TAX TELEPHONE THERMAL PLANTS THERMAL POWER THERMAL POWER GENERATION THERMAL POWER PLANT TOTAL COSTS TOTAL DEBT TOTAL FACTOR PRODUCTIVITY TRADING TRANSACTION TRANSLATION TRANSMISSION TRANSMISSION LINES TRANSMISSION SYSTEM TRANSMISSION SYSTEMS TRANSPARENCY TURNOVER UNIVERSAL ACCESS UTILITIES VALUE CHAIN VARIABLE COST VARIABLE COSTS WHOLESALE MARKET WIND Khurana, Mani Banerjee, Sudeshna Ghosh Beyond Crisis : The Financial Performance of India's Power Sector |
| geographic_facet |
South Asia India |
| relation |
World Bank Study; |
| description |
At the end of 2011, the Indian power
sector found itself in financial crisis, just a decade after
the 2001 bailout of state electricity boards (SEBs) by the
central government. Bankrupt state power distribution
utilities in several states were unable to pay their bills
or repay their debts. Despite the passage of the landmark
2003 Electricity Act and implementation of a broad set of
reforms over the past decade, the sector today is looking at
another rescue from the center, four times larger than
before. This financial rescue scheme amounts to about Rs 1.9
trillion ($42 billion) and was instigated by the
nonperforming assets of the banks and other financial
institutions. The Electricity Act was envisaged to create
independent companies functioning on commercial principles,
but they are still far away from that goal. This report
presents a diagnostic of the financial and operational
performance of segments in the power sector value chain
between adoption of the Electricity Act, 2003, and 2011,
including analysis of the factors that contributed to the
recent crisis. The report focuses on efficiency and
productivity, whether performance has improved over time,
and which states have emerged as performance leaders.
Analysis of this kind is not new or unique, but this report
aims to integrate historical performance, the current
situation, future projections of the impact of worsening
sector finances, and the actions that need to be taken to
check the downturn. The report draws primarily from utility
data collected by the Power Finance Corporation in
successive years on utilities operational and financial
performance. The Power Finance Corporation data were
collated into a single database with the addition of various
operational parameters at the plant level and the utility
level from the Central Electricity Authority. |
| format |
Publications & Research :: Publication |
| author |
Khurana, Mani Banerjee, Sudeshna Ghosh |
| author_facet |
Khurana, Mani Banerjee, Sudeshna Ghosh |
| author_sort |
Khurana, Mani |
| title |
Beyond Crisis : The Financial Performance of India's Power Sector |
| title_short |
Beyond Crisis : The Financial Performance of India's Power Sector |
| title_full |
Beyond Crisis : The Financial Performance of India's Power Sector |
| title_fullStr |
Beyond Crisis : The Financial Performance of India's Power Sector |
| title_full_unstemmed |
Beyond Crisis : The Financial Performance of India's Power Sector |
| title_sort |
beyond crisis : the financial performance of india's power sector |
| publisher |
Washington, DC: World Bank |
| publishDate |
2014 |
| url |
http://documents.worldbank.org/curated/en/2014/11/20364772/beyond-crisis-financial-performance-indias-power-sector http://hdl.handle.net/10986/20527 |
| _version_ |
1764445629392617472 |
| spelling |
okr-10986-205272021-04-23T14:03:56Z Beyond Crisis : The Financial Performance of India's Power Sector Khurana, Mani Banerjee, Sudeshna Ghosh ACCESS TO ELECTRICITY ACCOUNTING ADVERSE IMPACTS AFFORDABLE PRICES AGRICULTURE AMOUNT OF POWER APPROACH ARREARS AVAILABILITY BAILOUT BALANCE BALANCE SHEET BENCHMARK BENCHMARKING BIDS BILATERAL TRANSACTIONS BUSINESS MODELS CAPABILITIES CAPACITY PLANNING CAPITAL ADEQUACY CAPITAL EXPENDITURES CASH FLOWS COAL COAL CONSUMPTION COAL PRODUCTION COLLECTION EFFICIENCY COMMERCIAL BANKS COMPETITIVE BIDDING COMPETITIVE MARKETS COMPETITIVE POWER MARKETS COMPETITIVE PRICES COMPETITIVE PROCUREMENT COMPOSITION OF DEBT CONSUMERS COPYRIGHT COST ASSUMPTIONS COST OF POWER COST RECOVERY CREDITORS CUSTOMER RELATIONS CUSTOMER SATISFACTION CUSTOMER SERVICE DEBT DEBTOR DEBTS DEFICITS DEMAND FOR ELECTRICITY DEMAND FOR ENERGY DEMAND FOR POWER DEVELOPMENT FINANCE DISTRIBUTION COMPANIES DISTRIBUTION LOSSES DISTRIBUTION OF ELECTRICITY DISTRIBUTION OPERATIONS DOMAIN DOMESTIC COAL E-MAIL ECONOMIC GROWTH ECONOMIES OF SCALE EFFICIENCY IMPROVEMENT EFFICIENCY IMPROVEMENTS EFFICIENT POWER PROCUREMENT ELECTRIC POWER ELECTRICITY ELECTRICITY CAPACITY ELECTRICITY DISTRIBUTION ELECTRICITY GENERATION ELECTRICITY SECTOR ELECTRICITY SUPPLY ENERGY CONSUMPTION ENERGY EFFICIENCY ENERGY GENERATION ENERGY SHORTAGE FINANCES FINANCIAL CRISIS FINANCIAL DISTRESS FINANCIAL INSTITUTIONS FINANCIAL PERFORMANCE FINANCIAL SUPPORT FINANCIAL VIABILITY FISCAL DEFICIT FIXED COSTS FOREIGN EXCHANGE FOREIGN INVESTORS FUEL FUEL COSTS FUTURE DEMAND GAS GDP GENERATION GENERATION CAPACITY GOVERNMENT BONDS GOVERNMENT BUDGETS GOVERNMENT POLICIES GROSS DOMESTIC PRODUCT GROWTH RATE HEAT HEAT RATE HEAT RATES HUMAN DEVELOPMENT HUMAN RESOURCES HYDROPOWER IMAGES INDEPENDENT POWER PRODUCERS INDEPENDENT REGULATION INEFFICIENCY INFLATION INFORMATION SYSTEMS INFORMATION TECHNOLOGY INFRASTRUCTURE DEVELOPMENT INSTITUTION INSTRUMENT INTEREST COSTS INTEREST PAYMENTS INTERNATIONAL BANK INTERNATIONAL ENERGY INVESTMENT FLOWS KILOWATT HOUR LICENSE LICENSES LIQUIDITY LLC LOAD FACTOR LOAD FACTORS LOAD PROFILE LOAN LOANS FROM BANKS LONG-TERM LOANS MARKET DATA MARKET DEVELOPMENT MARKET REFORM MARKET REFORMS MARKET STRUCTURE MARKET STRUCTURES MONOPOLY MONOPOLY SUPPLIER NETWORK ACCESS NETWORK PLANNING NETWORKS NONPAYMENT NONPERFORMING LOANS OIL OIL CONSUMPTION OPEN ACCESS OPERATIONAL EFFICIENCY OPPORTUNITY COST OUTSOURCING OUTSTANDING LOANS PEAK DEMAND PHOTO POLICY FRAMEWORKS POWER POWER CAPACITY POWER CORPORATION POWER COSTS POWER DISTRIBUTION POWER GENERATION POWER GENERATORS POWER GRID POWER INDUSTRY POWER PLANTS POWER PROCUREMENT POWER PRODUCERS POWER PURCHASE POWER PURCHASE AGREEMENTS POWER PURCHASE COSTS POWER PURCHASES POWER REQUIREMENT POWER SECTOR POWER SECTOR DEVELOPMENT POWER SECTOR REFORM POWER SECTORS POWER SHORTAGE POWER STATIONS POWER SYSTEM PRIMARY ENERGY PRIMARY ENERGY SUPPLY PRIVATE CREDITOR PRIVATE PARTNERSHIP PRIVATE SECTOR PRIVATE SECTOR PARTICIPATION PUBLIC SECTOR QUALITY OF ENERGY QUERIES REGRESSION ANALYSIS RENEWABLE ENERGY RENEWABLE SOURCES RESERVE RESERVE BANK RESULT RESULTS RETAIL MARKETS RETAIL TARIFFS RETURN REVENUE COLLECTION RISK PROFILE RURAL ELECTRIFICATION SENSITIVITY ANALYSIS SHORT-TERM BORROWING SOLVENCY STATE UTILITIES TARGETS TARIFF CHANGES TARIFF REFORMS TARIFF REVISIONS TARIFF STRUCTURE TAX TELEPHONE THERMAL PLANTS THERMAL POWER THERMAL POWER GENERATION THERMAL POWER PLANT TOTAL COSTS TOTAL DEBT TOTAL FACTOR PRODUCTIVITY TRADING TRANSACTION TRANSLATION TRANSMISSION TRANSMISSION LINES TRANSMISSION SYSTEM TRANSMISSION SYSTEMS TRANSPARENCY TURNOVER UNIVERSAL ACCESS UTILITIES VALUE CHAIN VARIABLE COST VARIABLE COSTS WHOLESALE MARKET WIND At the end of 2011, the Indian power sector found itself in financial crisis, just a decade after the 2001 bailout of state electricity boards (SEBs) by the central government. Bankrupt state power distribution utilities in several states were unable to pay their bills or repay their debts. Despite the passage of the landmark 2003 Electricity Act and implementation of a broad set of reforms over the past decade, the sector today is looking at another rescue from the center, four times larger than before. This financial rescue scheme amounts to about Rs 1.9 trillion ($42 billion) and was instigated by the nonperforming assets of the banks and other financial institutions. The Electricity Act was envisaged to create independent companies functioning on commercial principles, but they are still far away from that goal. This report presents a diagnostic of the financial and operational performance of segments in the power sector value chain between adoption of the Electricity Act, 2003, and 2011, including analysis of the factors that contributed to the recent crisis. The report focuses on efficiency and productivity, whether performance has improved over time, and which states have emerged as performance leaders. Analysis of this kind is not new or unique, but this report aims to integrate historical performance, the current situation, future projections of the impact of worsening sector finances, and the actions that need to be taken to check the downturn. The report draws primarily from utility data collected by the Power Finance Corporation in successive years on utilities operational and financial performance. The Power Finance Corporation data were collated into a single database with the addition of various operational parameters at the plant level and the utility level from the Central Electricity Authority. 2014-11-12T23:12:54Z 2014-11-12T23:12:54Z 2015 http://documents.worldbank.org/curated/en/2014/11/20364772/beyond-crisis-financial-performance-indias-power-sector 978-1-4648-0392-5 http://hdl.handle.net/10986/20527 English en_US World Bank Study; CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ Washington, DC: World Bank Publications & Research :: Publication South Asia India |