ABSTRACT

The power sector provides a useful lens through which to view the contemporary Indian state because electricity is a key issue both for capital and for 'mass politics'. The 1948 Electricity (Supply) Act enshrined an uneasy compromise between the central and state governments. Electricity appears on the Constitution's 'Concurrent List'. The central government formulates long-term plans, provides technical analysis and approves projects. Electricity, a valuable agricultural input, was a key focus of the newly competitive distributive politics. There are two major power industry lobbies, the Independent Power Producers Association of India (IPPAI), and the Association of Power Producers (APP), which provide loud, articulate private voices in policy formulation. In the energy sector, India has favoured corporatization of public sector undertakings, the parallel introduction of competition, and public-private partnerships, while preserving state-owned enterprises (SOEs). This has created a pragmatic hybrid with the state playing a stronger role in steering and guiding developments, even though market rhetoric remains potent.