Policy Environment and Regulatory Reforms for Private and Foreign Investment in Developing Countries: A Case of the Indian Power Sector.

Abstract

The main objective of this report is to provide an overview of the evolving policy environment and regulatory framework for private and foreign investment in the Indian power sector. Given that the international capital flows do not happen in a vacuum, but are influenced by relative risk/return trade-off in various legal boundaries, the report provides a comparative analysis of the policy and regulatory framework in the Indian power sector with those in some of the Asian and Latin American countries. These include Argentina, Brazil, PRC, Mexico, and Thailand. This is expected to help identify the areas for policy action in the Indian context and to help design policy and regulatory reform in other developing countries, especially in the Asian region.