Economics & Finance / Industry & Sectors / Energy & Resources
India's Power Sector Reform: Did Splitting Up State Electricity Boards Actually Improve Efficiency?
In the 1990s and 2000s, India restructured its power sector, breaking up state electricity boards into separate generation companies. The goal? Boost efficiency and cut costs. But did it work? This study by Kabir Malik and Maureen Cropper, from their research paper 'Estimating the Impact of Restructuring on Electricity Generation Efficiency: The Case of the Indian Thermal Power Industry,' reveals surprising results. Using data from 385 coal-fired units between 1988 and 2009, they found that while operational reliability improved by up to 25% in early-reforming states, thermal efficiency—the key measure of fuel use—barely budged. The gains came from better management, not new technology. Watch to uncover why reforms only partially succeeded, and what India can learn for future energy policy.
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