This Restructuring and deregulation of the electricity industry is a movement with the aim of achieving lower prices to customers through cost savings. The deregulation of electric power systems in many parts of the world has changed the mechanism of electricity pricing. India is in the processing on restructuring in power sector. Power planning will play an important role in the successful power reform and essential for Indian economic growth. Only a financially and commercially sound power sector can attract new investments. In Indian power sector, restructuring will substantially change power planning, especially the methodology of the power generation expansion planning. The evolution of power restructuring and deregulation policies in India needed to be considered to produce full benefits from power utility deregulation. An important possible effect of deregulation may be a reduction in maintenance and in new investments. This paper emphasizes the current strategies and policies made by the Indian government towards deregulation.
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