West Bengal Power Sector Reforms : Lessons Learnt and Unfinished Agenda

Abstract

The West Bengal experience of reforms in power sector provides key learning on the sequencing, design and implementation of reforms program. The smooth restructuring of the power sector in West Bengal, characterized by a vibrant civil society, unionized and influential public sector workforce, political sensitivity towards Central Governments reform program is a significant achievement and holds out important lessons for future. This paper compares power sector reforms in West Bengal with other states in India and attempts to highlight the positive factors, which could be considered for future reform processes in the country. It also takes a critical look at some areas where West Bengal could have done better and also attempts to identify areas which would require greater focus in the subsequent phases to achieve the overall objectives of the reform and restructuring process. West Bengal had an advantage of learning from the reform and restructuring experience in other 11 states which preceded it and adopted measures to better guide the process and try to overcome the issues which led to shortfalls in achieving certain reforms and restructuring objectives in these states. The learning's from the other states helped State Government in adopting a phased approach with extensive stakeholder consultations to restructuring of state power sector entities. The State Government also has an unfinished agenda of initiating internal reforms and governance improvement measures in the generation company.