- Karnataka is one of the most
progressive states in India. Bangalore, the State's Capital is called the Silicon Valley
of India and has drawn the attention of the whole world, particularly in the field
of Information Technology. Government of Karnataka (GoK) has already initiated measures
for strengthening infrastructure facilities and creating an atmosphere for rapid
industrial development in the State, thereby improving more employment opportunities and
enabling rapid economic development.
- Power Sector is the most
vital for economic development of any State/country.The State visualizes an annual GDP
growth of at least 8%.To achieve this adequate power availability is essential. The Indian
situation in terms of the electricity : GDP elasticity ratio is 1.5. This means that the
power requirement should grow at the rate of 12% per annum. However the ratio may undergo
some change depending upon the nature of activities that contribute to GDP.
- Government of Karnataka is of
the view that the existing structure of the power sector is inadequate to satisfy the
criteria of efficient management of power production and supply, bringing down T&D
losses to international standards, enhancing the quality of supply and rendering good
service to the consumers. Hence, the Karnataka Electricity Reform Act, (KERA) has been
enacted in 1999. The salient features of the Act are :
(1) Constitution of Electricity Regulatory Commission.
(2) Corporatisation of the erstwhile Electricity Board and formation of several
(3) Privatisation of distribution companies and
(4) Augmentation of generation through Independent Power Producers
- Reform process has been
initiated and the following steps have been taken:
(1) Karnataka Electricity Board has been dissolved and in its place a Corporation
called Karnataka Power Transmission Corporation Ltd., (KPTCL) has
(2) Karnataka Electricity Regulatory Commission (KERC) is already in
place and is examining the tariff proposals of KPTCL.
(3) Consultants are being appointed for deciding on the modus operandi of
Privatisation of distribution companies, which will be carved out