Reforms in the electricity sector

Electricity is a capital-intensive industry, and the generation cost of electricity is about 5 crore per MW. It is necessary to keep down the cost and to run the present and future generating stations to maximum capacity. The reforms of electricity sector cannot be uniform. Each state will have to adopt its own model. To have economy in power generation, power supply, power distribution and transmission the provision of Electricity (Supply) Act-1948 is frame worked. The act had envisaged the formation of Central Electricity Authority (CEA) for power planning at the national level