ASSESSMENT OF POWER SECTOR REFORMS ON THE FINANCIAL PERFORMANCE OF HIMACHAL PRADESH POWER SECTOR

Abstract

The development of any country depends on the availability of quality power at a reliable price 24 X 7. Power is essential for every country to achieve economic growth. A drive for power sector reforms has been initiated by Governments as per the need of the hour. The Electricity Act of 2003 is the historic reform that separated the power sector into three (3) divisions, namely generation, transmission, and distribution, with a requirement that state regulators define the legal implications. The financial and operational performance of SEBs was very critical and witnessed huge financial debts. The Electricity Act of 2003 went into effect to increase the operational and financial effectiveness of the Indian Power sector. The major goals of the current study are to pinpoint the element that significantly affects HPSEB Ltd.'s financial performance. To study the effects of electricity sector reforms on financial performance, the Himachal Pradesh Distribution Utility is left unaffected.