India's Unlikely Model For Electricity Reform

The poor state of Orissa, with U.S. help, is privatizing power

Every morning, in an unadorned room in Bhubaneshwar, the temple-dotted capital of the eastern Indian state of Orissa, Michael Rosenzweig teaches three bureaucrats how markets work. The American from the Washington office of consulting firm National Economic Research Associates Inc. is helping Orissa manage its $1 billion effort to run the production and sale of electricity as a profitable business. He teaches his students, newly appointed regulators of Orissa's power industry, about tariffs, licenses, and other parts of the business. "Like papayas," Rosenzweig explains, "electricity is a commodity best left to the markets."

To continue reading this article you must be a Bloomberg Professional Service Subscriber.