MassiveIndustry

The past two decades have witnessed huge changes in the electricity sector. The changes in this sector at a rapid pace world over have resulted in competition in some segments of the sector, such as, generation and in some cases in distribution. India is no exception to the reforms that are being undertaken. The provisions of Open Access, power trading, competitive bidding, mentioned in the Electricity Act of 2003 are expected to give a spurt to competition.

Man’s tendency to move began millennia ago, satisfying a basic need for food, shelter, clothing or social interaction. The uncertain path of road construction through the centuries is set forth by the primitive and everlasting need for mobility, trade and communication. In the era of engineering, and mostly technological boost, highways of the fourth generation ensure safe, fast and easy driving. It is difficult to discern deficiencies or drawbacks in the layout of a motorway of the fourth generation. However, weak points still exist.

There has been rapid urbanisation in the cities of India which has led to an increase in demand for mobility. Public transport has not been able to satisfy the transportation needs of the population leading to rise in vehicle ownership. The huge numbers of private vehicles, heterogeneous traffic and limited road space have led to the problem of congestion on the Indian city roads. The situation is no different in Kolkata. Kolkata has a high population density. The road space in Kolkata is only 6 per cent compared to Delhi and Mumbai, which have greater road space.

With the enactment of Electricity Act 2003, competition in the Indian power sector received a new nomenclature and is considered instrumental in driving the sector in a sustainable trajectory. An exploratory analysis of the development of the electricity market is carried out to understand the finer nuances of emerging competitive paradigm of the sector, its critical aspects, evolving trends and patterns and future outlooks. The analysis reveals that competition, as it has evolved over last decade or so, manifests a growing trend of an efficient, liquid and complete market phenomenon.