Governance of Indian State Power Utilities : An Ongoing Journey

By the late 1990s, the technical and financial performance of the power sector in India had deteriorated to the point where the Government of India had to step in to bail out the state utilities, almost all of which were vertically integrated state electricity boards (SEBs). Considering that the dismal performance of state utilities reflected internal and external shortfalls in governance, the new Electricity Act of 2003 (EA 2003) mandated the unbundling and corporatization of the SEBs, along with the establishment of independent regulators. This was expected to bring about a more accountable and commercial performance culture, with concomitant results in improved utility performance. The rest of this review is organized as follows. Chapter two summarizes the institutional context and relevant developments over the past two decades. Chapter three focuses on the corporate governance agenda adopted by the government and its implementation, specifically relating to the structure and functioning of utility boards of directors. Chapter four reviews SERC regulatory governance. Chapter five analyzes the correlation between key indicators of the quality of regulatory and corporate governance and utility financial performance. And chapter six concludes.

Bibliographic Details

Main Authors:	Pargal, Sheoli, Mayer, Kristy
Language:	English en_US
Published:	Washington, DC: World Bank Group 2014-09-25
Subjects:	ACCOUNTABILITY, ACQUISITIONS, ADEQUATE TRANSPARENCY, ANNUAL REVENUE REQUIREMENT, APPROACH, ARTICLES OF ASSOCIATION, AUDIT COMMITTEE, AUDIT COMMITTEES, AVAILABILITY, BALANCE, BOARD MEETINGS, BOARD MEMBER, BOARD MEMBERS, BOARD MEMBERSHIP, BOARDS OF DIRECTORS, BUREAUCRACY, BUSINESS ETHICS, CADRES, CASH FLOWS, CENTRAL GOVERNMENT, CEO, CEOS, CHIEF EXECUTIVE, COMMERCIAL ACCOUNTING, COMMERCIAL ENTITIES, COMMERCIAL RISKS, COMMERCIALIZATION, COMPANIES ACT, COMPANY LAW, CONFEDERATION, CONSTITUTION, CONSUMER INTERESTS, CONSUMER PROTECTION, CONTROLLING SHAREHOLDERS, CORPORATE BODIES, CORPORATE DECISION, CORPORATE EXECUTIVES, CORPORATE GOVERNANCE, CORPORATE MALFEASANCE, CORPORATE PERFORMANCE, CORPORATE SOCIAL RESPONSIBILITY, CORPORATION, DECISION MAKING, DECISION-MAKING, DECISION-MAKING AUTHORITY, DISCLOSURE, DISTRIBUTION COMPANIES, DISTRIBUTION COMPANY, DISTRIBUTION FUNCTIONS, DISTRIBUTION SYSTEMS, EFFICIENCY OF SERVICE, EFFICIENCY OF SERVICE DELIVERY, ELECTRICITY, ELECTRICITY REGULATOR, ELECTRICITY SECTOR, ELECTRICITY SUPPLY, ELECTRICITY SYSTEM, ELECTRICITY TARIFFS, ELECTRICITY UTILITIES, ELECTRIFICATION, EMPLOYMENT, ENERGY EFFICIENCY, FINANCIAL AUTONOMY, FINANCIAL EVALUATION, FINANCIAL INSTITUTIONS, FINANCIAL PERFORMANCE, FINANCIAL STATEMENTS, FINANCIAL SUPPORT, FIRM PERFORMANCE, FRANCHISES, GENERATION, GOVERNANCE REQUIREMENTS, GOVERNMENT APPROVAL, GOVERNMENT DEPARTMENTS, GOVERNMENT OFFICIALS, GOVERNMENT POLICY, GOVERNMENT PROGRAMS, GOVERNMENT REPRESENTATIVES, GOVERNMENT SUBSIDIES, GOVERNMENT ­ PERFORMANCE, GROSS DOMESTIC PRODUCT, GROSS DOMESTIC PRODUCT DATA, HOLDING COMPANIES, HOLDING COMPANY, HUMAN RESOURCE, HUMAN RESOURCE POLICIES, HUMAN RESOURCES, HYDROPOWER, HYDROPOWER GENERATION, INCORPORATED, INDEPENDENT AUDIT, INDEPENDENT DIRECTOR, INDEPENDENT DIRECTORS, INDEPENDENT OVERSIGHT, INDEPENDENT REGULATION, INSTITUTIONAL STRUCTURE, INVESTMENT DECISIONS, JOINT VENTURE, JOINT VENTURES, LABOR UNIONS, LEGISLATION, LEGISLATURES, LIMITED, LTD., MANAGERIAL AUTONOMY, MANAGERS, METER READING, MINISTRY OF FINANCE, NETWORK INFRASTRUCTURE, NETWORK PLANNING, OPEN ACCESS, OPEN COMPETITION, OPERATIONAL EFFICIENCY, OPERATIONAL PERFORMANCE, PERFORMANCE INDICATORS, PERFORMANCE OUTCOMES, PERFORMANCE TARGETS, POISON PILLS, POLITICAL INTERFERENCE, POLITICAL SENSITIVITY, POLITICIANS, POLLUTION, POWER DISTRIBUTION, POWER GENERATION, POWER POLITICS, POWER PROCUREMENT, POWER SECTOR, POWER SECTORS, POWER SYSTEM, PRIVATE COMPANY, PRIVATE CORPORATION, PRIVATE OWNERSHIP, PRIVATE PARTICIPATION, PRIVATE PARTNERSHIPS, PRIVATE SECTOR PARTICIPATION, PROFIT MAXIMIZATION, PROXY, PUBLIC ACCOUNTABILITY, PUBLIC CORPORATIONS, PUBLIC OWNERSHIP, PUBLIC PARTICIPATION, PUBLIC POLICY, PUBLIC SECTOR, PUBLIC SECTOR MODEL, PUBLIC UTILITIES, PUBLIC UTILITY, PUBLIC WATER, PUBLIC WATER UTILITIES, QUALITY OF SERVICE, REGULATORY FRAMEWORK, REGULATORY FRAMEWORKS, REGULATORY MECHANISMS, RENEWABLE ENERGY, REORGANIZATION, REVENUE SHORTFALLS, RIGHTS OF SHAREHOLDERS, SERVICE PROVISION, SHAREHOLDER, SHAREHOLDER RIGHTS, SHAREHOLDER VALUE, SHAREHOLDERS, STAKEHOLDERS, STATE CONTROL, STATE GOVERNMENT, STATE POWER, STATE UTILITIES, STATE-OWNED COMPANIES, STATE-OWNED ENTERPRISES, STOCK MARKETS, STOCK PRICE, SUBSIDIARIES, SUCCESSOR COMPANIES, SUCCESSOR COMPANY, SUCCESSOR ENTITIES, TARIFF SETTING, TRANSPARENCY, UNION, UTILITY EMPLOYEES, UTILITY OPERATIONS, WATER UTILITIES,
Online Access:	http://documents.worldbank.org/curated/en/2014/09/20268779/governance-indian-state-power-utilities-ongoing-journey https://hdl.handle.net/10986/20397
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