Electricity Act (2003)

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The Electricity Act (2003) is a revolutionary piece of legislation enforced in India that aims to transform the power sector in India.

The act covers major issues involving generation, distribution, transmission and trading in power. While some of the sections have already been enacted and are yielding benefits, there are a few other sections that are yet to be fully enforced till date.

[edit] Generation

The Act delicenses power generation completely (except for hydro power projects over a certain size)

[edit] Distribution

The Act delicenses distribution in rural areas and brings in a licensing regime for distribution in urban areas.

However, as per the Act, only 16 states in India have notified what constitutes as rural areas and therefore the rural distribution is yet to be freed up in nearly one third of the country.