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This paper describes the efforts of the Indian government to upgrade its power system to account for the increasing interconnections due to rapid regional development. These include the unibus act (EA2003), which addresses the issue of public sector monopoly and opens up the field for competition, private participation and reforms, and the implementation of the ABT to the intrastate level. The reforms and restructuring policies of the government have assured an adequate rate of return to investors. The national electricity policy implementation is expected to fulfill the aim of meeting more demand at a higher security level.