IDEAS home Printed from https://ideas.repec.org/b/wbk/wbpubs/20397.html
   My bibliography  Save this book

Governance of Indian State Power Utilities : An Ongoing Journey

Author

Listed:
  • Sheoli Pargal
  • Kristy Mayer

Abstract

By the late 1990s, the technical and financial performance of the power sector in India had deteriorated to the point where the Government of India had to step in to bail out the state utilities, almost all of which were vertically integrated state electricity boards (SEBs). Considering that the dismal performance of state utilities reflected internal and external shortfalls in governance, the new Electricity Act of 2003 (EA 2003) mandated the unbundling and corporatization of the SEBs, along with the establishment of independent regulators. This was expected to bring about a more accountable and commercial performance culture, with concomitant results in improved utility performance. The rest of this review is organized as follows. Chapter two summarizes the institutional context and relevant developments over the past two decades. Chapter three focuses on the corporate governance agenda adopted by the government and its implementation, specifically relating to the structure and functioning of utility boards of directors. Chapter four reviews SERC regulatory governance. Chapter five analyzes the correlation between key indicators of the quality of regulatory and corporate governance and utility financial performance. And chapter six concludes.

Suggested Citation

  • Sheoli Pargal & Kristy Mayer, 2014. "Governance of Indian State Power Utilities : An Ongoing Journey," World Bank Publications - Books, The World Bank Group, number 20397.
  • Handle: RePEc:wbk:wbpubs:20397
    as

    Download full text from publisher

    File URL: https://openknowledge.worldbank.org/bitstream/handle/10986/20397/911570PUB0Box300310EPI02103030Sep25.pdf?sequence=1
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Shirley, Mary M & Xu, Lixin Colin, 2001. "Empirical Effects of Performance Contracts: Evidence from China," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 17(1), pages 168-200, April.
    2. Mary Shirley, 1998. "Why Performance Contracts for State-Owned Enterprises Haven't Worked," World Bank Publications - Reports 11537, The World Bank Group.
    3. Sumir Lal, 2006. "Can Good Economics Ever Be Good Politics? Case Study of India's Power Sector," World Bank Publications - Books, The World Bank Group, number 7032.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jain, Ritika & Nandan, Amit, 2019. "Effect of Electricity Act on tariff gap within the subsidizing sector: The case of India," Energy Policy, Elsevier, vol. 132(C), pages 901-914.
    2. Wang, Chang & Guo, Yue & Yang, Yu & Chen, Shiyi, 2022. "The environmental benefits of electricity industry restructuring in China: Ownership mixing vs. vertical unbundling," Energy Economics, Elsevier, vol. 115(C).
    3. Srivastava, Govind & Kathuria, Vinish, 2020. "Impact of corporate governance norms on the performance of Indian utilities," Energy Policy, Elsevier, vol. 140(C).
    4. Kathuria, Vinish, 2021. "Impact of institutional reforms on the performance of distribution utilities in India – A dynamic panel data analysis," Energy Policy, Elsevier, vol. 158(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Megginson, William Leon, 2005. "The Financial Economics of Privatization," OUP Catalogue, Oxford University Press, number 9780195150629.
    2. Ram Sahi & Najib Khan, 2011. "Evolution of India’s Electricity Market Deregulation and Private Sector Investment in the Power Sector(withdrawn for review)," Carleton Economic Papers 11-08, Carleton University, Department of Economics.
    3. Min, Brian & Golden, Miriam, 2014. "Electoral cycles in electricity losses in India," Energy Policy, Elsevier, vol. 65(C), pages 619-625.
    4. Dr Alex Bryson & John Forth, 2012. "CEO Bonding: Who Posts Performance Bonds and Why?," National Institute of Economic and Social Research (NIESR) Discussion Papers 389, National Institute of Economic and Social Research.
    5. Kato, Takao & Long, Cheryl, 2006. "CEO Turnover, Firm Performance and Enterprise Reform in China: Evidence from New Micro Data," IZA Discussion Papers 1914, Institute of Labor Economics (IZA).
    6. Hasnain, Zahid & Matsuda, Yasuhiko, 2011. "The politics of power : the political economy of rent-seeking in electric utilities in the Philippines," Policy Research Working Paper Series 5704, The World Bank.
    7. Majid Hashemi & Glenn Jenkins, 2021. "The Economic Benefits of Mitigating the Risk of Unplanned Power Outages," Working Paper 1468, Economics Department, Queen's University.
    8. Taye Mengistae & Lixin Colin Xu, 2004. "Agency Theory and Executive Compensation: The Case of Chinese State-Owned Enterprises," Journal of Labor Economics, University of Chicago Press, vol. 22(3), pages 615-638, July.
    9. Recanatini, Francesca & Wallsten, Scott J. & Lixin Colin Xu, 2000. "Surveying surveys and questioning questions - learning from World Bank experience," Policy Research Working Paper Series 2307, The World Bank.
    10. Chhibber, Ajay, 2021. "India's Interventionist State: Reduce Its Scope and Increase Its Capability," MPRA Paper 105711, University Library of Munich, Germany, revised 01 Feb 2021.
    11. Justin T Callais & Linan Peng, 2021. "The Impact of Place-Based Policy: Evidence from a Multiple Synthetic Control Analysis of the Northeastern Revitalization Program in China," Working Papers 2021-03, DePauw University, School of Business and Leadership and Department of Economics and Management.
    12. repec:elg:eechap:15325_22 is not listed on IDEAS
    13. Xiaozu Wang & Lixin Colin Xu & Tian Zhu, 2004. "State‐owned enterprises going public The case of China," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 12(3), pages 467-487, September.
    14. Xia, Jun & Li, Shaomin & Long, Cheryl, 2009. "The Transformation of Collectively Owned Enterprises and its Outcomes in China, 2001-05," World Development, Elsevier, vol. 37(10), pages 1651-1662, October.
    15. Jiang, Minghua & Xu, Lixin Colin, 2005. "Medals in transition: explaining medal performance and inequality of Chinese provinces," Journal of Comparative Economics, Elsevier, vol. 33(1), pages 158-172, March.
    16. Stoyan Tenev & Chunlin Zhang & Loup Brefort, 2002. "Corporate Governance and Enterprise Reform in China : Building the Institutions of Modern Markets," World Bank Publications - Books, The World Bank Group, number 15237.
    17. Chao-yo Cheng & Johannes Urpelainen, 2016. "Unawareness and indifference to economic reform among the public: evidence from India’s power sector reform," Economics of Governance, Springer, vol. 17(3), pages 211-239, August.
    18. Liu, Guy S. & Sun, Pei & Woo, Wing Thye, 2006. "The Political Economy of Chinese-Style Privatization: Motives and Constraints," World Development, Elsevier, vol. 34(12), pages 2016-2033, December.
    19. repec:mje:mjejnl:v:12:y:2017:i:1:p:63-71 is not listed on IDEAS
    20. Stephen Howes, & Deepak Mishra, & VJ Ravishankar, 2007. "Ten Years of World Bank Sub-National Policy-Based Lending to India: A Retrospective," ASARC Working Papers 2007-18, The Australian National University, Australia South Asia Research Centre.
    21. Zhang, Le-Yin, 2004. "The Roles of Corporatization and Stock Market Listing in Reforming China's State Industry," World Development, Elsevier, vol. 32(12), pages 2031-2047, December.
    22. Daniele Calabrese, 2008. "Strategic Communication for Privatization, Public-Private Partnerships, and Private Participation in Infrastructure Projects," World Bank Publications - Books, The World Bank Group, number 6522.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wbk:wbpubs:20397. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Tal Ayalon (email available below). General contact details of provider: https://edirc.repec.org/data/dvewbus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.