India

Last month we examined what ails the distribution segment of the electricity business in India and the challenges facing the Distribution Companies (Discoms, in common parlance). Over the past two decades India has been struggling to reform the distribution sector managed by more than a hundred utilities in 35 States and Territories. Electricity is a concurrent subject in India which means although there are federal laws, States are empowered to enact their own amendments to the basic laws. Thus several States passed their own legislation and tried out different models for privatising and restructuring. Some models yielded less than desired results and some others were spectacular failures driving the sector into even deeper crisis.