India's power sector is looking up with as many as 11 state electricity boards having reported reduction in losses during the last two years and the public-sector companies increasing their recoveries, R V Shahi, the Union Power secretary, said in New Delhi on Wednesday.

Speaking at a discussion on the electricity sector hosted by Confederation of Indian Industry, Shahi said, "Besides putting in place the Electricity Act 2003, the ministry of power has taken various initiatives and results are here to see. As many as 11 states have reduced financial losses to the tune of Rs 5,000 crore (Rs 50 billion)."

The collection rate (recovery of current dues) of National Thermal Power Corporation, Power Grid Corporation and National Hydro Electric Power Corporation has increased significantly and is ruling above 90 per cent.

Electricity Act 2003 was a necessary condition for reforms but was not sufficient, Shahi said, adding that the Accelerated Power Development and Reform Programme has been in operation and the power sector was taking advantage of the scheme.

Union Power Minister Anant Geete has also said that with the new Act in place the power sector was bound to have competition and hoped that more investments would come into the sector.