India electricity services. The availability and accessibility of affordable

India is set for a rapid, sustained growth in energy demand.
Electricity is one of the important key drivers of economic development. It
plays a pivotal role in sustainable development. While it empowers social and
economic progress, but it has also an adverse impact on
the environment. A continuous, consistent, reliable and affordable supply of
electricity is a prerequisite for economic development, social security and
public welfare. In India, it is focused to develop alternative sources of
energy in order to meet the country’s burgeoning energy deficit. Due to rapid
economic expansion, India has one of the world’s fastest growing energy markets
and is expected to be the second-largest contributor to the increase in global
energy demand by 2035, accounting for 18% of the rise in global energy
consumption. Electricity, a mean of energy is considered an important input of
development which directly determines the pace of economic growth in every
state of India. The industrial and commercial undertakings have become
dependent upon the availability of reliable and affordable electricity
services. The availability and accessibility of affordable and qualitative
power, gives fuel to the engine of economic growth. With a production of 1,031
TWh, India are the third largest producer and fourth largest consumer of
electricity in the world. It has fifth largest installed capacity in the world.
The government targets capacity addition of 88.5 GW under the 12th
Five-Year Plan (2012-17) and around 100 GW under the 13th Five-Year
Plan (2017-22). The installed capacity reached 36.5 GW as on October 2015. Wind
energy is estimated to contribute 60 GW, followed by solar power at 100 GW by
2022. The target for renewable energy has been increased to 175 GW. The Government
allowed 100 percent FDI under the automatic route in the power segment and
renewable energy.

The electricity industry was restructured by the Electricity Act
2003, which unbundled the vertically integrated electricity supply utilities in
each state of India into a transmission utility, and a number of generating and
distribution utilities. The restructuring was particularly to improve the
efficiencies in the functions i.e. generation, transmission, and distribution
of electricity power. There are two factors identified for the inefficiency
i.e. public ownership of utilities and low capacity utilization. Despite low
electricity per capita consumption in India, the country is going to achieve
surplus electricity generation during the 12th five years plan (2012
to 2017) period provided its coal production and transport infrastructure is
developed adequately.

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                        Although
the reforms in energy sector including power, coal, oil, gas, and renewable are
underway but the pace of reforms in each sub sector is different. In power
sector, the reforms need special attention to foster development aspirations.
Despite significant growth in terms of technological sophistication and
capacity addition, the power sector suffers from financial weakness and supply
constraints. Indian policy-makers are making strenuous efforts to remove
obstacles to investment in energy supply, while moving ahead with complementary
policies on efficiency and energy pricing that can constrain growth in
consumption.