Lack of Regulatory Will

In 2001, the government bailed out cash-strapped state electricity boards with a Rs 40,000-crore cheque to wipe out their losses and start on a clean slate. Ten years later, the picture has changed dramatically for the worse. In 2011, discussions are on the table to bail out state power utilities yet again. This time, the cheque would be in the region of more than Rs 1,00,000 crore if the dues are to be totally waived. A decade of reforms in the power sector has reduced the loss of selling electricity in the country by 2.5 paise per unit. 

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