Everand Logo

Welcome to Everand!

  • Discover millions of ebooks, audiobooks, and so much more with a free trial

    From $11.99/month after trial. Cancel anytime.

    Beyond Crisis: The Financial Performance of India's Power Sector
    Beyond Crisis: The Financial Performance of India's Power Sector
    Beyond Crisis: The Financial Performance of India's Power Sector
    Ebook127 pages2 hours

    Beyond Crisis: The Financial Performance of India's Power Sector

    By Mani Khurana and Sudeshna Ghosh Banerjee

    ()

    Read preview

    About this ebook

    In September 2012, the Government of India approved a financial rescue scheme to revive the power generation sector. This bailout amounted to about Rs 1.9 trillion and came in response to banks and financial institutions with large nonperforming loans to the power sector. This is the second bailout of the sector in a decade. The first was in 2002 when the government had to convert the outstanding arrears of state electricity boards to central public sector undertakings. The 2002 bailout came to Rs 400 billion in state government bonds to restore the sector to financial solvency. The recent crisis and consequent bailout is more complicated than the 2002 bailout. Power sector developments in the past two decades have brought new players into a traditionally government-dominated sector, and they have also been implicated in the crisis.

    India has adopted transformative policy changes since the last bailout. A landmark Electricity Act was passed in 2003, superseding all previous legislation. The strategic intent of the act was to promote competition by opening all possible avenues for the procurement and sale of electric power. Subsidiary policies and enabling legislation have advanced this process. Competitive markets have evolved and attracted new investments, largely from the private sector. The institutional structure of the traditionally public sector-dominated industry has also been transformed. Aside from the entry of new private sector participants, primarily in generation, the state electricity boards (SEBs) were unbundled into generation, transmission, distribution, and, in a few cases, trading segments. State electricity regulatory commissions (SERCs) were also established in all the states.

    Over the next two decades, India faces immense challenges if it is to sustain the 8 to 10 percent growth rate required to end poverty and achieve human development goals. According to the Planning Commission, India needs to triple or quadruple its primary energy supply and increase its installed electricity capacity by at least five or six times its 2004 levels to meet demand in 2032. To accomplish these ambitious goals, India will need a commercially viable power sector.

    This report presents a diagnostic of the financial and operational performance of segments in the power sector value chain between adoption of the Electricity Act, 2003, and 2011, including the factors that contributed to the recent crisis. The report focuses on efficiency and productivity, whether performance has improved over time, and which states have emerged as performance leaders. Analysis of this kind is not new or unique, but this report aims to integrate historical performance, the current situation, and future projections of the impact of worsening sector finances, and the actions that need to be taken to check the downturn.
    LanguageEnglish
    PublisherWorld Bank Publications
    Release dateNov 20, 2014
    ISBN9781464803925
    Beyond Crisis: The Financial Performance of India's Power Sector

    Read more from Mani Khurana

    Related to Beyond Crisis

    Related ebooks

    Industries For You

    View More
    View More

    Related podcast episodes

    Related articles

    • UNLIMITED

      The Urge To merge

      Apr 15, 2022

      ▶ HDFCLTD, in its 45-year history, had not just helped a chunk of the country’s population build dream homes, but also birthed one of the top private lenders of the country. However, the past few years have been tough with the tried-and-tested busine

      11 min read

    • UNLIMITED

      A Recovery Plan

      Jan 16, 2021

      Q. What are the three key measures you would like to see in the Union budget that will drive growth, given that the economy is in recession? A. ADITI NAYAR: Prioritisation of capital expenditure, especially projects already identified in the Natio

      16 min read

    • UNLIMITED

      Investing With A Conscience: The Rise Of ESG And What Really Matters To Investors

      Jun 17, 2019

      Socially responsible investing has really blossomed in the past few years. What used to be viewed as a niche investment philosophy is now firmly planted in the mainstream, with everyday consumers using their dollars to support companies that align wi

      3 min read

    • UNLIMITED

      The Epic Shift

      Mar 4, 2021

      The Epic Shift
      7 min read

    • UNLIMITED

      COP26 Climate Change Conference: Is Saudi Arabia's Net Zero Pledge A Breakthrough, Or Just A Mirage?

      Nov 13, 2021

      There is probably no country on Earth where the economy is more tied up with hydrocarbons than Saudi Arabia. About 42 per cent of the Gulf state's GDP is linked to oil and gas, according to a research centre linked to the authorities (the King Abdull

      5 min read

    • UNLIMITED

      A Slice Of The Sky

      Apr 1, 2022

      When the Tata group acquired ailing national carrier Air India last year, it was a seminal moment not just for privatisation in India but also for the Indian aviation industry. Here was one of the country’s largest and storied business groups acquiri

      2 min read

    • UNLIMITED

      Nature's Fuel

      Jun 11, 2018

      Nature's Fuel
      5 min read

    • UNLIMITED

      Bond Challenges

      Oct 13, 2023

      Bond Challenges
      4 min read

    • UNLIMITED

      The Market For Green Finance Is Growing Globally

      Mar 6, 2021

      CLIMATE change is no longer a future threat – it has already had a devastating impact on the financial sector. However, it also presents opportunities for investors. Financial institutions are exposed to the physical risks associated with more freque

      2 min read

    • UNLIMITED

      What Lies Behind ESG Returns?

      Jul 2, 2021

      Last week, Eiji Hirano, former chair of the board of governors at Japan’s Government Pension Investment Fund (GPIF) – the world’s largest such fund – told Bloomberg that he sees signs of a “bubble” in ESG investing (that is, investing with environmen

      2 min read

    • UNLIMITED

      Big, But Not Whole

      Feb 6, 2023

      Big, But Not Whole
      3 min read

    • UNLIMITED

      Tanzania Is Ahead Of Schedule

      Oct 1, 2020

      Since 2015, the Tanzanian Fifth Phase Government, under reform-minded President Dr John Pombe Magufuli, has set an ambitious industrialisation agenda in pursuit of the goals articulated in its National Development Vision 2025. To achieve that, and in

      5 min read

    • UNLIMITED

      Octopus Energy Chief Greg Jackson Declares London World Leader Of Green Energy Tech As It Wins “Double Unicorn” $2bn Status

      Dec 24, 2020

      Greg Jackson has the kind of ambition Britain needs from its tech stars. Rather than just have a great idea then sell out to a Google or a Facebook, he wants to grow his green power brainchild, Octopus, to become the "Amazon of Energy". Today, he too

      4 min read

    • UNLIMITED

      Bad Day At BlackRock?

      May 30, 2020

      Bad Day At BlackRock?
      4 min read

    • UNLIMITED

      Fuelling Economic Growth

      Feb 6, 2020

      Fuelling Economic Growth
      16 min read

    • UNLIMITED

      Should you Invest Overseas?

      Jan 7, 2022

      Should you Invest Overseas?
      6 min read

    • UNLIMITED

      Shriram’s Umbrella Blueprint

      Apr 29, 2022

      Shriram’s Umbrella Blueprint
      8 min read

    • UNLIMITED

      Clipped Influence

      Jun 9, 2023

      Clipped Influence
      3 min read

    • UNLIMITED

      Esg: Decoding Its Opportunities

      Feb 6, 2023

      There is a new sense of urgency in addressing ESG issues, created in part by the palpable effects of climate change and the social and economic fallout of the COVID-19 pandemic. However, there are many misnomers about what ESG is and it is critical t

      3 min read

    • UNLIMITED

      News

      May 20, 2022

      News
      5 min read

    • UNLIMITED

      The Q3 Tumble

      Mar 11, 2023

      The Q3 Tumble
      2 min read

    • UNLIMITED

      “We Want A Poverty-free World On A Liveable Planet’’

      Sep 15, 2023

      One of the key thrusts of India’s G20 presidency has been the urgent need to reform multilateral development banks (MDBs). And the World Bank features prominently in the New Delhi Declaration. US President Joe Biden is putting in a lot of effort to e

      9 min read

    Related categories

    Reviews for Beyond Crisis

    0 ratings

    0 ratings0 reviews

    What did you think?

    Tap to rate

    Review must be at least 10 words

      Book preview

      Beyond Crisis - Mani Khurana

      Enjoying the preview?
      Page 1 of 1