An analysis of the regulatory aspects of the much-vaunted Orissa model
of power sector reform shows serious lacunae in the whole design. The
Regulatory Commission (RC), which is the supreme decision-making auth
ority, has complete autonomy and its decisions cannot be challenged in
the courts or in any other appellate body. But the provisions for the
RC's accountability are too weak and can be easily by-passed. Thus th
e structure is highly 'sabotage-prone' and can lead the power sector t
o a more serious and long-term crisis, making the cure worse than the
disease. Yet many other states are jumping on the bandwagon of the Wor
ld Bank-conceived Orissa model.