Mukherjee, Mohua2014-10-102014-10-102014-10-02978-1-4648-0339-0https://hdl.handle.net/10986/20410This 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.en-USCC BY 3.0 IGOALTERNATIVE ROUTEAMORTIZATIONAMOUNT OF POWERANNUAL REVENUE REQUIREMENTAPPROACHARREARSAUCTIONAUCTIONSAVAILABILITYBAILOUTSBANK CREDITBANKING CRISISBANKING SECTORBANKING SECTOR STABILITYBANKING SYSTEMBENEFICIARYBIDBIDDING PROCESSBIDSBLACKOUTSBOTTOM LINEBROWNOUTSBULK POWERCAPACITY CHARGESCAPACITY UTILIZATIONCAPITAL EXPENDITURECASH FLOWCHECKSCOALCOMMERCIAL BANKCOMMERCIAL BANK LOANSCOMMERCIAL BANKINGCOMMERCIAL BANKSCOMMERCIAL CONTRACTSCOMMERCIAL LENDERSCOMPETITIVE BIDDINGCOMPETITIVE BIDDING PROCESSCOMPETITIVE PROCUREMENTCONCESSIONCONSUMPTION OF ELECTRICITYCONTRACT MANAGEMENTCONTRACTUAL OBLIGATIONSCOST OF POWERCOSTS OF POWERCREDIT RATINGCREDIT RATING AGENCIESCREDIT WORTHINESSCREDITWORTHINESSCURRENT ACCOUNT DEFICITCUSTOMER SATISFACTIONCUSTOMER SERVICEDEBTDEFICITSDIESELDISCOSDISTRIBUTION AREASDISTRIBUTION COMPANIESDISTRIBUTION FACILITIESDISTRIBUTION LOSSESDISTRIBUTION NETWORKDISTRIBUTION PRIVATIZATIONDIVESTITUREDOMESTIC COALECONOMIC GROWTHELECTRIC POWERELECTRIC SUPPLYELECTRICITYELECTRICITY DISTRIBUTIONELECTRICITY GENERATIONELECTRICITY GENERATION CAPACITYELECTRICITY SECTORELECTRICITY SUPPLYEMISSIONSEND USERSENERGY MARKETSENERGY SHORTAGESENERGY SUPPLYEXCESS POWERFINAL CUSTOMERSFINANCESFINANCIAL CLOSUREFINANCIAL CRISISFINANCIAL HEALTHFINANCIAL OBLIGATIONSFINANCIAL PERFORMANCEFINANCIAL RETURNSFINANCIAL VIABILITYFIXED COSTSFOREIGN LENDERSFOSSILFOSSIL FUELFRANCHISEESFUELFUEL COSTFUEL COSTSFUEL PRICESFUEL SUPPLYGENERATIONGENERATION ASSETSGENERATION BUSINESSGENERATORSGOVERNMENT COMPENSATIONGOVERNMENT OWNERSHIPGOVERNMENT SUPPORTGRIDSGROSS DOMESTIC PRODUCTGROWTH IN DEMANDGROWTH IN DEMAND FOR ELECTRICITYHEATHEAT RATEHOLDINGHOUSEHOLD SAVINGSINDEPENDENT POWER PRODUCERSINFLATIONINFORMATION TECHNOLOGYINFRASTRUCTURE DEVELOPMENTINFRASTRUCTURE SECTORINTERNATIONAL BANKINTERNATIONAL BANKSINTERNATIONAL INVESTORSINVESTMENT TARGETSINVESTOR UNCERTAINTYISSUANCEJOINT VENTUREJOINT VENTURESKILOWATT-HOURKILOWATT-HOURSLARGE CONGLOMERATESLARGE CUSTOMERSLEGAL FRAMEWORKLNGLOW TARIFFSMARKET SHAREMICROFINANCEMOBILE PHONENATURAL GASOPEN ACCESSOUTSOURCINGPAY CLAUSESPAYMENT SYSTEMSPEAK DEMANDPERCENT RATE OF RETURNPOLITICAL ECONOMYPOTENTIAL INVESTORSPOWERPOWER COMPANYPOWER CONSUMPTIONPOWER CONTRACTSPOWER CORPORATIONPOWER COSTSPOWER DEVELOPMENTPOWER DISTRIBUTIONPOWER GENERATIONPOWER GRIDPOWER PLANTPOWER PLANTSPOWER PROCUREMENTPOWER PRODUCERPOWER PRODUCERSPOWER PROJECTPOWER PROJECTSPOWER PURCHASEPOWER PURCHASE AGREEMENTSPOWER PURCHASESPOWER REQUIREMENTSPOWER SECTORPOWER SECTOR REFORMPOWER SECTORSPOWER SHORTAGESPOWER SUPPLIERSPOWER THEFTPOWER TRANSMISSIONPRICE DISCOVERYPRICE INCREASESPRIVATE CAPITALPRIVATE INVESTMENTPRIVATE INVESTORPRIVATE INVESTORSPRIVATE PARTIESPRIVATE PARTYPRIVATE SECTOR GENERATION CAPACITYPRIVATE SECTOR PARTICIPATIONPROBABILITY OF DEFAULTPUBLIC SAVINGSPUBLIC SECTORPUBLIC SECTOR BANKSPUBLIC SECTOR ENTITIESPUBLIC SUBSIDIESPUMPINGPURCHASING POWERREGULATORY FRAMEWORKRELIABILITY OF SUPPLYRENEWABLE ENERGYRENEWABLE ENERGY TECHNOLOGYRESERVERESERVE BANKRESIDENTIAL CUSTOMERSREVENUE COLLECTIONREVENUE SHORTFALLSREVERSE AUCTIONREVERSE AUCTIONSRISK TOLERANCERURAL ELECTRIFICATIONSANITATION SECTORSOLAR ENERGYSOLAR POWERSOLAR PROJECTSSOLAR THERMALSTATE UTILITIESSTOCK MARKETSTOCK MARKET BUBBLETARIFF STRUCTURESTAXTAX COLLECTIONSTENDERSTHERMAL POWERTRANSMISSION GRIDTRANSMISSION LINETRANSMISSION LINESTRANSPARENCYUTILITIESWINDWINNING BIDDERS10.1596/978-1-4648-0339-0