An Untenable Model

Sebastian Morris (‘Regulatory Strategy and Restructuring: Model for Gujarat Power Sector’, Economic and Political Weekly, June 3) attempts a comprehensive review of the reform strategy in India and tries to offer a solution to the problems encountered in terms of a different model of restructuring. Given the dearth of debate in the country on the far-reaching reforms of the power sector that has been initiated in many states, the article is welcome and offers an opportunity for policy-makers and those in academia to interact.

In the first part Morris more or less reiterates the well known issues and shortcomings of the reform process though some of the lacunae pointed out have been remedied in the revised orders relating to restructuring and regulation policy issued by the government of India in recent years. However, there are a few comments, which merit consideration and correction and these are dealt with in Section I of this note in response. In Section II Sebastian Morris’ paper deals with a new model of reform and restructuring which attempts to overcome the shortcomings of the present model. A critique of this model is set out in the second section here.