LLM Notes: Growth and Evolution of Public Utilities and Their Legislation in India

• Colonial Era Foundations (Pre-1947)

  • Public utilities were primarily private or local authority-managed with limited urban reach.

  • The Indian Electricity Act, 1910, was the first legislation regulating electricity supply, introducing government licensing.

  • Railways emerged as a principal utility, regulated under the Railway Act, 1890.

  • Water resource regulation focused on irrigation under acts like the Northern India Canal and Drainage Act, 1873.

  • Government of India Act, 1935 empowered provinces to legislate on utilities like water and electricity.

• Post-Independence State Control (1947–1991)

  • Emphasis on state-led development, marked by the Industrial Policy Resolutions of 1948 and 1956.

  • Electricity (Supply) Act, 1948 created State Electricity Boards (SEBs) for integrated generation, transmission, and distribution.

  • Railways nationalized and reorganized under the Railways Act, 1951 for unified management.

  • Water declared government property under the Constitution, with national development programs for water supply and irrigation.

  • Establishment of central PSUs like NTPC (1975), NHPC for energy infrastructure.

  • Rural electrification became a priority through Five-Year Plans.

• Economic Liberalization and Sector Reforms (1990s–2000s)

  • SEBs faced crises; reforms were initiated for efficiency and private participation.

  • Landmark Electricity Act, 2003 introduced competition, unbundled SEBs, and open access for private and independent power producers.

  • 73rd and 74th Constitutional Amendments (1992) decentralized utility governance to local bodies, empowering Panchayats and urban municipal institutions.

  • Shift from sole public sector dominance to mixed ownership and participation models.

• Modern Developments and Technological Upgrades (2010s–Present)

  • Completion of a national electricity grid consolidating regional grids in 2013.

  • Government schemes such as UDAY (discom financial revival), PM-KUSUM (solar energy), and FAME II (electric mobility) propelled modernization.

  • Focus on renewable energy sources (solar, wind), smart grid technology, and sustainable utility services.

  • Regulatory updates in telecom and other utility sectors to accommodate emerging technologies.

  • Public-private partnerships continue with attention to grid capacity, financial sustainability, and equitable service delivery.

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