Reforms, Restructuring, and Infrastructure Sector: A Study of Initiatives in Orissa Power Sector

In 1994, the Government of Orissa initiated power sector reforms and restructuring. The reform programme resulted in vertical unbundling of the state-owned integrated electric utility, corporatization of the resultant entities, and constitution of an autonomous regulatory commission for power sector regulation in the state. One of the key features of the reform programme was the privatization of distribution activity. To make the process successful and obtain more revenues, there was a need for the distribution entities to change the existing culture and approach to management. The Government of Orissa undertook a process of organizational strengthening to develop appropriate organizational structure, systems, and business processes suitable to the new environment. This study describes the various strengthening measures implemented by Grid Corporation of Orissa to make it commercially viable and function effectively in the new environment following power sector reform.