Power generation and distribution has long been a state monopoly ill India.
State electricity boards have suffered from excessive and arbitrary govern
ment interference. They have run at a loss and have failed to meet the powe
r needs of their consumers. Unbundling and privatisation have recently been
discussed. The Karnataka Electricity Reform Ordinance is meant as a step i
n the direction of improving efficiency and transperancy of operations. But
it is not likely to solve the basic problems. it tinkers with form not sub
stance.