The document provides a chronological overview of the development of the Indian power sector from 1879 to 2018. It outlines key milestones such as the enactment of early electricity acts in the late 1800s, the establishment of state electricity boards in the 1940s-1950s, the introduction of policies promoting private sector participation in the 1990s-2000s, and the enactment of the Electricity Act of 2003 which restructured the sector. Major events covered include the expansion of generation, transmission, and distribution infrastructure across India over this period.

1. Chronology of Indian Power Sector’s Development
Amitava Nag
1879:- First demonstration of electric light in Calcutta was
conducted on by P W Fleury & Co.
1882:- Mumbai saw electric lighting demonstration for the first
time at Crawford Market.
1887:- Indian Electricity Act 1887 was enacted
1895:- The Government of Bengal passed the Calcutta Electric
Lighting Act
1897:- Kilburn & Co secured the Calcutta electric lighting license
as agents of the Indian Electric Co. A month later, the company
was renamed as Calcutta Electric Supply Corporation Limited
which was registered in London. The first hydroelectric
installation in India was installed near a tea estate in Darjeeling
(Sidrapong Hydel Power Station).
1903:- Indian Electricity Act 1903 was the first attempt to regulate
the electricity sector broadly in the country. But, this act was
ambiguous, as it did not recognize bulk sale of electricity and also
jurisdictions of local government and Government of India were
not clearly demarcated.

2. 1905:- Bombay Electric Supply & Tramways Company (BEST)
set up a generating station in 1905 to provide electricity for the
tramway. The first electric street light in Asia was lit in 1905
in Bangalore.
1910:- Indian Electricity Act 1910 gave the power of licensing to
local governments and moreover, issuing of license for bulk
supply was introduced.
1922:- Indian Electricity Rules 1922 was introduced
1925:- The first electric train in the country ran on the Harbour
Linebetween Bombay's Victoria Terminus and Kurla on 3
February 1925.
1937:- Indian Electricity Rules 1922 was amended
1948:- Electricity Supply Act 1948 was enacted to envisage State
Electricity Boards (SEBs) in different states with full powers to
control generation, distribution and utilization of electricity within
their respective states and also to constitute Central Electricity
Authority (CEA). DVC ACT 1948 was enacted
1949:- Electricity is declared as a concurrent subject in the
Constitution of India giving both parliament and the state
legislation the power to legislate over this subject.
1951:- The Industries (Development and Regulations) Act 1951.
Industrial policy reserved Generation and Supply of Electricity to
public sector. States began to take over the private Licensee’s
functions and assets and vested them in the SEB.

3. 1956:- Indian Electricity Rules, 1956 was introduced. Industrial
Policy resolution (nationalizing the generation and distribution of
electricity, except for the private licenses that already existed).
1962:- Atomic Energy Act 1962 was enacted
1964: - Five Regional Electricity Boards (REBs) were formed
1969:- Rural Electrification Corporation (REC) was established to
ensure the availability of electricity for accelerated growth as a
remedy to famines of 1960s and also to improve the quality of life
for rural and semi-urban population.
1975: - Creation of Central Generating Companies for
development of super thermal power stations at coal pit heads and
large hydroelectric stations leading to creation of NTPC, NHPC,
& NEEPCO. Amendment to Electricity Act 1910 enables
generation in Central Sector, commercial viability in functions of
SEBs
1976:- Electricity Supply Act was amended. Govt. Generating
Companies recognised under the Act. Price, terms and conditions
of sale of energy by generating companies determined by the
appropriate Government.
1977:- 400kV voltage level was introduced
1985:- Power System Planning Criteria issued by CEA. For the
first time West Bengal Govt. started a Generating Company
named as WBPDCL apart from State Electricity Board

4. 1986:- Power Finance Corporation (PFC) was incorporated as a
dedicated financial institution for the power sector.
1989:- Power Grid Corporation of India Limited (PGCIL) was set
up by carving out the transmission assets from various central
utilities. Railway Act 1989 was introduced. HVDC back to back
system was introduced by PGCIL.
1990:- HVDC bi-pole line was introduced. Decision was taken for
asynchronous connection between regions.
1991:- Amendment to Electricity Act 1910 and Electricity Supply
Act 1948 to pave the way for the formation of private Generating
companies. CEA empowered to fix the norms for determining the
tariff of all generating companies. RBI allows 100% foreign
investment in power sector. Also to establish Regional Load
Dispatch Centers (RLDCs). To encourage private investments into
generation, several policies were promulgated like:-
 A guaranteed 16% return on equity with full five years tax
holiday. [When NTPC was allowed 12% return on Equity]
 Debt to equity ratio of 4:1.
 Sovereign guarantees and escrow benefits in case SEBs
defaulted
1992 - First Gazette Notifications on the criteria for fixing the
tariff for sale of electricity by the Generating companies to SEBs
or any other agency. Transmission of NTPC was taken by PGCIL.
ER and NER were synchronized.
1994:- Load dispatch under PGCIL. Sanction of ULDC scheme.

5. 1995:- Mega Power Policy was announced.
1996:- Orissa became the first state to start power sector
restructuring. World Bank supported Orissa’s reform process
through a $350 million assistance package.
1998:- Electricity Regulatory Commission Act enacted paving the
way for the formation of Central Electricity Regulatory
Commission (CERC) and State Electricity Regulatory
Commissions (SERC). Regulatory power of the State
governments transferred to SERC. Consequently, Tariff regulatory
function of CEA transferred to CERC. I.E ACT 1910 and ES Act
1948 was Amended. Transmission recognised as independent
activity and Licensed activity. Constitution of Central and state
Transmission Utilities. Changes in regional load dispatch centre
functions. Private participation in transmission was allowed.
1999:- Privatization of distribution in Orissa.
2000:- Private Sector Participation in Power Sector Guidelines by
GoI. Introduction of Indian Electricity Grid Code (IEGC).
Introduction of Inter-State ABT to promote scientific settling for
contracted sale and purchase of power and to bring about grid
discipline; UI mechanism is part of the short-term market.
Introduction of 765kV line by PGCIL.
2001:- Energy Conservation Act, 2001 was enacted.
2002 - Privatization of distribution in Delhi. Bureau of Energy
Efficiency (BEE) came into force.

6. 2002 - Availability Based Tariff was implemented when Power
sector commercial losses had risen to about Rs 25000 Crore.
2003 - Electricity Act 2003 enacted by the Parliament. This Act
repeals the Indian Electricity Act 1910, Electricity supply Act
1948, Electricity Regulatory Commission Act 1998. The Salient
features of the Electricity Act 2003 are:-
 Creates a liberal and transparent framework for the
development of power sector.
 Facilitates investment by creating competitive environment
and reforming distribution sectors.
 SEBs has to be unbundled into separate generation,
transmission and distribution entities.
 Licensing for generation sector is removed, except techno-
economic clearance for hydro projects exceeding a capital
cost notified by Central Government.
 Freedom to have captive and group captive generations.
 Establishment of SERCs made mandatory.
 Recognizing trading as an independent activity.
 Open access in transmission facilitating multi buyer and
seller model.
 Open access to consumers having demand above one MW
within five years from date of enforcement of Electricity
(Amendment) Act 2003.
 Regulators have been mandated to enforce this.
 Envisaging consumer redressal forum and their appellate
authority, the Ombudsman.
 100 percent metering made compulsory.
 Provisions relating to theft of electricity made very stringent.
 For rural and remote areas, stand alone systems for
generation and distribution permitted.

7. Few other things happened in 2003. APDRP scheme was
introduced. WR syncronised with ER-NER system.
2004:- First Open Access Regulation was published by CERC.
Bilateral trading of Electricity was started. Appellate Tribunal
started functioning.
2005:- Government of India through Ministry of Power launched
the initiative of Ultra Mega Power Projects (UMPPs) with a
capacity of about 4,000 MW based on supercritical technology
(both pit head and imported coal based). National Electricity
Policy was notified by GoI.
2006 - Tariff Policy, Competitive bidding for procurement of
power, Ultra Mega Power Projects started. Staff paper
“Developing a common platform for electricity trading” where
was discussed. Integrated Energy Policy and Rural Electrification
Policy were notified by GoI. CERC notified IEGC 2006.
2007:- Guidelines were issued by CERC for grant of permission
for setting up and operation of Power Exchange. WR
synchronized with NR-ER-NER. CEA notified Technical
Standard for Connectivity to the Grid Regulations. National
Electricity Plan was notified. Electricity Act 2003 was amended.
2008:- Indian Energy Exchange (IEX) and Power Exchange
India Limited (PXIL) commenced their operations. “Open Access
in Inter-State Transmission Regulations” notified by CERC which
covered Short-term Open Access transactions including collective
transaction through Power Exchanges. Hydro Power Policy was
notified by GoI. R-APDRP, NAPCC was introduced.

8. 2009:- CERC notified Grant of Connectivity, Long Term Open
Access and Medium Term Open Access Regulations.
2010:- CERC (Power Market) Regulations were introduced.
CERC notified Terms and Conditions for recognition and issuance
of Renewable Energy Certificate for Renewable Energy
Generation Regulations. CEA notified Grid Standards Regulations
Technical Standard Regulations and Safety Regulations.
POSOCO formation.
2011:- Introduction of PoC method for allocation of inter-State
transmission charges.
2014:- SR synchronized with rest of India
2015:- India starts exporting power to Bangladesh. CERC notified
(Ancillary Services Operations) Regulations
2016:- CERC introduced (Terms and Conditions for Dealing in
Energy Savings Certificates) Regulations. NER was directly
connected with NER. Tariff Policy was revised by GoI.
2017:- Draft National Energy Policy has been published by Niti
Aayog. CERC notified Communication Regulations.
2018:- CERC notified inter-State Transmission Planning
Regulations
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