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ternative and more lucrative career options. The Government, which sponsors a majority of the capital projects has not done enough to address this issue. Training the graduates is the most viable option even though this could push up the project costs to a certain extent.

DRIVE TOWARDS PRIVATIZATION

From the above discussion, we can clearly observe the need to try out something different to benefit the power sector and the option available in the sight is privatization. Some of the evident advantages of privatization are –

Implementation issues of power projects could be solved

Technological advancement through increased R&D spend to gain competitive advantage

Increased investment – Foreign investments

Improves revenue realization making the service more efficient

More players to cover up for the deficit

It is usually assumed that private players would execute the projects with greater efficiency and hence, the implementation issues could be resolved. There would be greater investments in this sector to derive the best and gain a competitive edge while making the business viable. Hence, the technology used currently could undergo a revamp and make great advancement through greater spend in research and development. The foreign player who are currently keen on investment in India’s growth story could bring in better technology, investment and the expertise to carry out large power projects. This would also bring in greater efficiency and as a result of privatization we could see greater number of player competing. The power deficit currently faced by the country could be addressed due to the existence of large number of players and also there could be a gain for the consumers through price wars and existence of a competitive market.

PAVING THE WAY FOR PRIVATIZATION

The government has also realized that there is a scope for improvisation and sees the advantages of privatization. Since, this is a heavily regulated sector Government regulations play a huge role in driving the privatization. It has now undertaken some actions that could pave the way ahead for the privatization of the sector and encourage greater investments from the private sector. Some others like the Land Acquisition Bill are yet to be passed but currently facing some political resistance. The reforms taken by the government are –

Electricity Act, 2003 is an historic legislation, which not only integrates the previous three Acts, but goes beyond in trying to create a competitive environment.

Consumer is the central point of this legislation and the main features are:

Promoting competition for benefit of the consumers.

Effective mechanism for redressal of consumers’ grievances

Regulatory oversight for transparency

Measures to control theft of power

Special measures for power in rural areas

Facilitates Investment by creating competitive Environment

Entry Barriers removed/reduced

Generation de-licensed

Freedom to captive generation including group captive.

Recognizing trading as an independent activity.

Open access in transmission already in place.

Open access to consumers above 1 MW within five years commencing from 2