India Sees Privatization as Answer to Flailing State Power Firms
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India’s federal government will encourage inefficient state power utilities to seek privatization and other institutional reforms to turn around money-losing operations and ensure reliable supplies to consumers, according to the top bureaucrat in the federal power ministry.
States with electricity utilities that lose more than 15% of revenue due to archaic networks, power theft and sloppy billing and collections would be pushed to seek private participation in their distribution network as part of the country’s planned second wave of power reforms, Power Secretary Sanjiv Nandan Sahai said in an interview in New Delhi.