Regulatory performance in India

The last decade saw the emergence of a new form of governance in the infrastructure sector not only in India but also in many countries in South Asia. The new framework, which lays thrust on increasing the level of private participation and competition, is primarily in response to a set of non-ideological factors such as technological innovation, need for additional funds beyond public resources, inability of the government to supply infrastructure services in an efficient and commercially sound manner, competitive pressures in the international market, and so on. Additionally, as a part of overall reforms in the infrastructure sector, there have been concerted efforts to deepen the institutional reforms. These reforms, inter alia, include creation of an independent regulatory institution that works at an arm's length from the government, which is also an important stakeholder in the sector. This institution is neither an administrative body nor a judicial authority. Being transparent, it is more accountable compared to the traditional Westminster style of accountability, as has been prevalent in India.