Can Uttar Pradesh emerge as a poster boy for India’s power sector reforms?

The Bharatiya Janata Party’s victory in Uttar Pradesh, among other things, may accelerate power sector reforms in India.

The Yogi Adityanath-led government has signed an agreement to provide round-the-clock electricity in less than two years. That is a Herculean task for the state where eight-hour power cuts are a norm. But optimism is in the air.

Ground checks and interactions by IIFL Institutional Equities with state power distribution companies (discoms) show there is a “strong intent” to change the existing inefficient system. According to the broking firm, Uttar Pradesh is steering a turnaround of the electricity sector through change in working culture at the discoms, reduction in losses, costs and infrastructure improvements, with central government support. Read more…