Institute for Social and Economic Change

Working Paper: 401

Performance of Power Sector in Karnataka in the
Context of Power Sector Reforms

Laxmi Rajkumari
K Gayithri



This is an attempt to assess the performance of Karnataka power sector, using select technical and financial performance indicators. A Power Sector Performance Index (PPI) is computed using the methodology used for Human Development Index. Some technical indicators, like energy deficit, installed capacity, per capita electricity consumption, have improved in the post-reform period; nonetheless, the state lagged behind other major Indian states. Total installed capacity and total electricity generation showed significant trend break in 1999; however, the capacity utilisation rate remained quite low. The T&D loss fell tremendously over time. Average revenue realisation rate rose after reform, although the rate differs greatly across consumer categories. Collection efficiency was highest in HESCOM, while the AT&C loss was lowest in MESCOM in 2013-14. Overall, the PPI value increased from 1998-99 to 2012-13 indicating better performance after reform, and, the ranking improved from the 8th to 3rd position, showing improved performance vis-a-vis other states.


Working Papers