Independent Evaluation

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Assam Power Sector Development Program - Case Studies

ADB’s program assistance to the state electricity board in Assam, India has been successful largely because of the commitment of the province to reforms. This has resulted in increased capacity and greater supply delivery reliability.

Unbundling has been achieved and new separate corporate entities with clean balance sheets have been established as a result of restructuring. The restructuring included partial state assumption of liabilities, more transparent subsidies, rationalization of state-owned generation, and new organizational structures that focused on service delivery. In particular, pilot projects have reduced the large scale losses due to electricity theft and management efficiency gains in Assam are widely recognized as leading examples of the reform process.

The energy regulator of Assam has also received grants, which resulted in greater independence and regulation of the state electricity board’s generation, transmission and distribution sectors.

The study [ PDF: 107kb | 11 pages ] suggests, however, that more assistance may be needed to maintain the momentum created by the program loans. ADB should consider providing some additional assistance in human resource development and developing information technology systems that support planning and governance.