Prior to mid-seventies, State electricity boards were mainly responsible for generation, transmission and distribution of electricity and for the growth of power sector in India with the only exception of small contribution from private enterprises and the captive power plants owned and operated by industrial units. During mid-seventies, national sector power stations viz, NTPC, NHPC etc. started electricity generation which are adding phenomenally in the generating capacity of the country. During 1991, the government of India allowed private sector participation in electricity generation, transmission and distribution. The response of the private sector was encouraging and a number of independent power producers came forward in the process of electricity generation and distribution.
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