The following reforms have been initiated :
(i) Privatisation in power generation sector :
The government earlier had the monopoly in the generation and distribution of electricity. Now, private sector has been given the rights to generate power.
(ii) Privatisation in power transmission : The Indian government has approved Tata power and
Powergrid corporation of India for constructing transmission networks in joint renture.
(iii) Power for all by 2012 : The ministry of power
has set up an objective of 'Power for all by 2012' to achieve the target of 1000 kw. Hr. (Units) of per capita consumption of electric-ity in India, This objective is aligned with the objective to achieve an economic growth of 8% p.a. The main motive of this target is to improve the quality of power, improve the commercial viability of power industries and
to provide power to all.
(iv) Setting up regulatory mechanism : The Central Electricity Regulatory Commission (CERC) along with State Electricity Regulatory Commission (SERC) has been established in 19 states under the Electricity Regulatory Com¬missions Act 1998, These commissions and authority regulate tariff, promote efficiency and competition.
(v) Encouraging FD1 : In order to achieve the
target of power for all by 2012, the ministry of power aimed at attracting US $ 250 billion of investment (FDI and Domestic Investment Combined) into the power sector.
(vi) Accelerated Power Development and Reform Programme (APDRP): APDRP has been initiated in the year 2000-01 with the motive of improving financial viability, reducing trans-mission and distribution losses and promoting transparency through computerization