Synopsis This study examines three aspects of the power sector in India: The operational inefficiency in the State Electricity Boards, the Consequent reform drives and the political economy involved in these two aspects. It is argued that the present system predicament is due to problems, which are just internal to the system. This then implies that there do remain sufficient quarters for remedial exercises, meant to remove the problems that stand in the way of the SEBs’ improved performance. In other words, what the system badly requires is essence-specific reforms, not structure-specific ones. This in turn signifies the prime need to keep the power sector wholly in the public domain in a developing country like India.