A series of power sector reforms were undertaken by the state government aimed at introducing a set of regulatory reforms and at unbundling of what was originally an integrated State Electricity Board. The reforms aimed at segregating production, distribution and regulation functions. Ratification of the Electricity Act 2003 led to a further deepening of the reform process by dismantling monopoly in the power sector. The paper provides an overview of the impact of power sector reforms on the operational and financial performance of the power sector utilities of Uttar Pradesh. Utilising the data obtained from the Uttar Pradesh Power Corporation Ltd. and the Bureau of Public Enterprises, Uttar Pradesh, the paper highlights the status of transmission and distribution losses, aggregate technical and commercial losses, plant load factor, operating and financial performance of the state power utilities of Uttar Pradesh between 2002–2003 and 2015–2016 (the latest point of time for which data is available). In addition to other financial indicators, liquidity, asset management, leverage and profitability ratios have been calculated to analyse the financial performance. The paper concludes that the state power-utilities are yet to cover a long distance to become financially and commercially viable. However, the positive impact of the reform measures has been abundantly visible since the financial year 2012–2013.
Power Sector Reforms and Performance Assessment of Power Sector Utilities of Uttar Pradesh
