Madhya Pradesh Power Sector Investment Program

Lessons learned from earlier interventions need to be incorporated during implementation. An earlier PPER for the Madhya Pradesh Power Sector Development Program implemented from 2002 to 2007 had highlighted the need to reduce AT&C losses by improving billing and collection efficiency and discouraging electricity theft by taking legal action against pilferers as a necessary follow-up to ensure financial sustainability. 64 The MFF failed to apply this lesson during implementation and to effectively reduce AT&C losses as it did not include formulation of a viable strategy to counteract the perverse incentives offered by local politics and traditional practices (para 58). As policy and behavioral changes are often necessary to ensure ownership and long-term sustainability of a program, both should have been included in the MFF design and closely monitored during its implementation.