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Two decades after the liberalization of India's economy and a decade after the passage of the Electricity Act of 2003, what is the state of India's power sector? A new ESMAP-supported report, More Power to India: The Challenge of Electricity Distribution notes that while the sector has come a long way, with significant achievements on many fronts, the lack of reliable power remains a serious concern and a constraint to growth. Annual per capita consumption is low by global standards and 300 million people lack electricity.
The incentives of state government, regulators and commercial financial institutions must be aligned to support utility performance. While the Electricity Act and associated policies constitute an enabling policy and regulatory framework for the sector’s development, the report argues that the focus now must be on implementation.