Power generation and distribution has long been a state monopoly in India. State electricity boards have suffered from excessive and arbitrary government interference. They have run at a loss and have failed to meet the power needs of their consumers. Unbundling and privatisation have recently been discussed. The Karnataka Electricity Reform Ordinance is meant as a step in the direction of improving efficiency and transperancy of operations. But it is not likely to solve the basic problems. It tinkers with form not substance.
