Chhattisgarh is a new State which was carved out of Madhya Pradesh on the 1st November, 2000.   It is one of the very few states in the country, which has a robust power sector since its very inception.  The power position of the State is comfortable. The Chhattisgarh State Electricity Board (CSEB), which was constituted almost immediately after the State came into being,  in a position more or less to meet the electricity requirement of the new State and more importantly, is in good financial health. In Chhattisgarh, NTPC has an installed thermal capacity of 2100 MW while CSEB's units have a thermal capacity of 1240 MW and hydel capacity of 130 MW. Apart from NTPC and CSEB, there are a number of private generation units of large and small capacity. The state Govt. has pursued a liberal policy with regard to captive generation which has resulted in a number of private players coming up.

As per a study made by the Power Finance Corporation Ltd. New Delhi, the state has potential of 61000 MW of additional thermal power in terms of availability of coal for more than 100 years and more than 2500 MW hydel capacity. To tap this vast potential, substantial addition to the existing generation capacity is already under way. CSEB is setting up thermal plant of two units each of 250 MW capacity at Korba and plans to have another 2 units, each of 250-300 MW at Korba West as Extension Stage-III. NTPC is setting up a thermal power project at Seepat, with 3x660 MW capacity in Phase I and 2x500 MW in Phase II. Bhilai Steel Plant, which has a captive power plant of 110 MW, is setting up 270 MW power plant for their own use.  Balco, Korba already has captive plant of 270 MW and they are already on way to commission another plant of 540 MW capacity.  M/s Jindal Steel and Power Ltd., has a power plant of 150 MW and are adding 79 MW capacity to this plant.   They have entered into an MOU with the Chhattisgarh Govt. for IPP of 1000 MW. M/s. Jaiswal Neco Ltd. and M/s. Monnet Power Ltd., Raipur have also planned for setting up Captive power plants of 200 MW and 55 MW respectively. Thus an additional capacity of 6125 MW of thermal power is planned in the State of which 2980 MW shall be in the Central Sector.  Most of these plants are in various stages of implementation.  Apart from these major power producers, there are a number of small captive power units which also are adding their capacity.


However, the reform process has been slow in the state for a variety of reason.  Although a number of steps have been taken by the CSEB, the main provider of electricity in the state, for internal reforms, primarily aimed at improving efficiency, structural reforms have been delayed due to various factors of which non-finalization of division of assets and liabilities of the erstwhile Madhya Pradesh Electricity Board is the most important.  The State government has recently taken steps to carry forward the reform process in terms of the provisions of Electricity Act, 2003. The first significant step is the setting up of the ERC.