With losses of state electricity boards at a staggering Rs 1.14 lakh crore, World Bank on Tuesday said power distribution in India needs sweeping reforms if it is to bring back the country to a high growth trajectory and meet its goal of expanding access to electricity to all by 2019.
The bank recommended freeing utilities and regulators from external interference, increasing accountability and enhancing competition in the sector to move it to a higher level of service delivery.
Today, India’s annual per capita power sector consumption at around 800 kWh is among the lowest levels in the world while power sector’s debt is at a whopping Rs 3.5 lakh crore or 5% of GDP, the World Bank said.