Ever since India got independence in 1947, there has been a substantial growth in India's electric power sector. This sector has been growing at a CAGR of 8.2%. In spite of this growth, per capita power consumption is still low as compared to the average consumption worldwide.
Also various government agencies & organizations have been regulating and controlling the Power sector in India. On the other hand, only limited areas of jurisdiction & consumer base are covered by the private sector.
Following the trends in other parts of the world, Indian power sector is also undergoing a process of restructuring and reformation. Independent regulatory commissions are being set up & vertical integrated utilities are being unrolled in to corporate entities. Various efforts are being put in for facilitating competition, wherever possible, in this sector.
Also, new institutional entities were set up in power sector. Healthy relationship amongst these institutions is supposed to be critical for ensuring a sustained growth of power sector in India & for realizing reform goals.
To conclude, it needs to be considered seriously that unbundling and privatization alone can't help the industry survive forever. Even though these activities are designed & sponsored by the World Bank. Power sector reforms are crucial for the economy of India.
For more information on power sector in India you can read the report "Indian Power Sector (2006)" available at http://www.rncos.com/Report/IM041.htm.
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