The electric utility, traditionally, is one of the most conservative and defensive sectors, with mostly government-controlled entities. (Image: Reuters)The electric utility, traditionally, is one of the most conservative and defensive sectors, with mostly government-controlled entities. After the opening of the sector, there is substantially private sector investment in both regulated and unregulated services. A few years back, independent power producers (IPPs)/independent power transmission companies mushroomed in India. However, for the last two to three years, they have been under severe pressure, and many of the IPPs have been liquidated, while others, including the large and reputed ones, are languishing. Similarly, in the distribution sector, UDAY scheme was launched with a big bang about two and a half years back, but it has again gone to the back burner and the expected improvement in the operational front is yet to be visible. One must be wondering what is behind such huge performance discrepancies in a short time? The electric utility sector is facing transformation on multiple fronts. The sector is under pressure from policy makers, regulators,…
