Annexure 1: A Brief Chronology of Events in the Power Sector , with specific reference to SEBs
Pre-Independence	Around 80 per cent or 4/5th of power supply was provided by private companies limited to urban areas.
Post-Independence	As per the Indian Constitution, electricity was declared a concurrent subject, meaning both state and central governments have jurisdiction over the sector.
1948	The Electricity (Supply) Act, 1948 laid down the structure of the electricity industry in independent India. Private companies were taken over by SEBs, except five licensed under the Electricity Supply Act, 1910 (two in Bombay and one each in Calcutta, Ahemdabad and Surat).
	SEBs were vertically integrated entities that were financially structured entirely through state government loans. They were to function commercially and achieve a minimum 3 per cent rate of return on capital.
Mid - 1960’s	Regional Electricity Boards (REBs) were created to ingrate regions into regional grids as a measure to correct resource inadequacy for power generation of different states within the region.
October 1991	Amendment of Electricity Supply Act of 1948:
	·     privatisation in generation was permitted
	·     REBs were given statutory status
	·     process of restructuring of SEBs was initiated
1996	Orissa Reform Act was passed
1998	Amendment in Electricity Supply Act to allow privatisation in transmission
1998	Electricity Regulatory Commissions Act 1998 was enacted enabling state governments to set up State Electricity Regulatory Commissions (SERCs) which would achieve the very important objective of depoliticising tariff setting
March 2001	An Expert Group* was constituted, following a Chief Ministers’ Conference, to recommend
	(a)    a scheme for one-time settlement of outstanding dues of the SEBs** and
	(b)    a programme for medium-term capital restructuring and reform of the SEBs
2003	Electricity Act 2003 was enacted and implemented on 10th June 2003 by which the Electricity Act 1910, Electricity (Supply) Act 1948 and Electricity Regulatory Commissions Act 1998 stood repealed.
*: The Group, chaired by Montek Singh Ahluwalia, Member, Planning Commission, then comprising Jairam
Ramesh, Deputy Chairman, Karnataka Planning Board; Harish Salve, Solicitor General of India; Rakesh
Mohan, Advisor to the Finance Minister; V M Lal, Principal Secretary (Energy), Government of
CEO, SBI Caps; Ajay Shankar, JS, Ministry of Power; Ranjit Bannerjee, JS (PF-I), Ministry of Finance;
Maharashtra; Deepak Parekh, Chairman, IDFC; K V Kamath, MD & CEO, ICICI; Birendra Kumar, MD &
Gajendra Haldea, Chief Advisor and Head of the Centre for Infrastructure and Regulation, NCAER; K K
Maheshwari, Group Executive President (Chemicals), Aditya Birla Group; R Ramanujam, JS & FA,
Member Secretary, Ministry of Power.
**: As on February 28, 2001, the dues of SEBs to various CPSUs and Railways had accumulated to Rs.  on
41,473 crore consisting of Rs. 25,727 crore of principal amount and Rs. 15,746 crore of surcharge/interest
delayed payment i.e. over one third of the total dues. (Figures provided to the group by the ministry of power.)
Source: EPWRF