The State Electricity Boards (SEBs) have been unable to set up additional capacity to meet the rising demand due to several difficulties. To supplement the efforts of the public sector, the government has invited the private sector to participate in the power sector. Alongwith deregulation, major structural, institutional and regulatory reorganization are envisaged in order to strengthen financial and executive autonomy, efficient commercial functioning and competitive conditions in this sector. A process of restructuring of SEBs has been initiated in the States of Andhra Pradesh, Bihar, Haryana, Orrisa, Rajasthan & Uttar Pradesh.
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