Exercises · Q14
Q.Discuss the reforms which have been initiated recently to meet the energy crisis in India.
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Start your 14-day free trial to unlock the full solution →Recent reforms: privatising the power sector (especially distribution), allowing higher electricity prices, promoting renewables, and stepping up public investment, R&D and technology to boost supply.
To meet India's growing energy crisis, several reforms have been initiated:
- Privatisation of the power sector. Instead of investing directly in adding to installed capacity, the government has gone in for privatisation, particularly of the distribution of electricity (as in the case of Delhi), to bring in investment and better management.
- Higher pricing of electricity. The government has allowed much higher prices for electricity so that tariffs better reflect costs — though this has hit certain sectors and consumers hard, raising debate about whether it is the right policy. …
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