The power sector in India is in dire need of reforms and has started the road to recovery to meet the ever increasing demand of electricity. This article analyzes the current problems and possible future potential of the Indian Power Sector.

Electric power is something that any and every economy requires not just to grow, but also to sustain. There is hence no rocket science to the fact that development in the electric power industry of a country is a significant cause of overall economic development. When we extend this logic to the Indian context, the argument is even more compelling. Given that the Indian industry is growing at a rate of 6% per year in an era where double-digit GDP growth targets are being set, the role of electric power assumes great importance. The situation thus offers a huge potential for both domestic and overseas private players.

Power generation in India is accomplished through a blend of thermal, hydro, and nuclear sources. Approximately 70% of the total power generation is done via thermal power plants. Hydro-electricity plants contribute about 25% and the rest comes from nuclear and wind sources. However, major opportunities are seen today in the latter two sources of power with the Indo-US nuclear deal and the stepping up of infrastructure development.

Portfolio Organizer Magazine, Indian Power Industry, Gross Domestic Products, GDP, State Electricity Boards, SEBs, Electricity Act, Private Sector Industries, State Electricity Regulatory Commission, SERC, Power Supply Industry.