The two major political propagandas of Indian political parties are “Education for All^[1]” and “Electricity for everyone at every Village”. Despite all the technical advancements government failed to provide electricity for every village of India, not only that, government failed to provide incessant electricity to any city too. India suffers acute electric shortage. Most of the cities suffer brownouts. Generally, any common city or town of India suffers electric cuts for 4-6 hours daily, while some more industrial cities and towns of India (like that of cities of Uttar Pradesh) suffers acute blackouts for even 12 hours a day.
It would be nothing new to stress again that it is impossible for any government to ensure and provide anything like “Free-education” or “Free-electricity” as citizen’s rights in any condition. As it is impossible, governments are bound to fail to meet such promises.
The Destruction of Power Sector under Government
We have seen how the price controls destroys the power of market and producers to supply the required commodity to meet the demands and hence creates shortages^[2]. In order to neutralize the effect of price control, government thus tends to exclusively control certain sectors of production completely under the monopoly. As government controls the production and supply of electricity thoroughly in India, it may be assumed that the price control on electricity may not affect the supply because it is the government only, that is producing and supplying electricity and hence government may provide electricity sufficiently at controlled lower prices or even at no price at all. As a matter of fact, government even tries to provide free-electricity for various purposes, yet government suffers acute shortage of electric power and hence fails to meet the demand of electricity. The natural law that price controls brings shortages works even in such exclusively government franchised production sector.
Role of inflation in electric shortages

If there is no inflation and government is providing electricity at lowest minimal prices, government often fails to gain any profit over the power sector and hence suffers acute financial deficits to increase the production of electricity to meet the required demand. Even the minimal possible price for electricity certainly remains much higher than the prices that would have prevailed in free market because not only the electric sector suffers any vital competition to increase production and decrease prices; it actually prohibits any such effort. All efforts to increase production are surmounted by the increase in demand.
If there is a genuine inflation rate, the cost of production of electricity keeps increasing, while the government and regulatory bodies either refuses to increase the price of electric power or allows only insufficient increase in prices. As a result, power sector suffers losses and deficits and ceases to grow rapidly and increase production because it gets no profit to save and invest in further production. Hence, government is forced to provide subsidies and capital for the power sector to keep producing from the compulsory tax collected. As a result, the citizens are forced to pay much higher price for the comparably insufficient and menial electric services than what they would have been paying for much better and sufficient electric services in free market. As the power sector under government regulations remains in deficit and suffer losses, it fails to replace worn-out equipments and service lines at higher prices due to inflation and that increase wastage and forces power sector to actual decline.
Corruption in power sector
Because of the natural losses and deficits in power-sector, government is forced to pay the required amounts to keep the production of electricity from the budgets of compulsory tax collected. This enforces a certain corruption where the more hardworking and able persons who are obviously making higher incomes, are forced to pay much higher prices for the power-sector (or any commodity/service under government monopoly), while the lazy, dishonest and incapable ones are getting the same services of electricity at much lower prices, often at no price at all. This obviously is acute corruption that forces every citizen to actually accept corruption in his own demeanour. As any consumer realizes that he is actually paying much higher prices for the electricity in form of various taxes he is forced to pay than the others, who are paying lesser taxes, he feels cheated, and that increases the tendency of consumer to steal electricity. Often consumers tend to tamper the electric meters and other ways to actually use more electricity and pay less. This seems to be genuine too because they are already paying much higher prices in form of other compulsory taxations. Often, because of controlled prices of electricity people over-consumes and hence waste the electricity. Overall, the power sector is forced to keep suffering great losses, insufficient amount to keep increasing production, to replace worn-out equipments, supplying lines, and almost no amount for development, innovation and inventions to reduce wastage and increase production. The amount that could have been used to increase production of electricity is wasted upon creating better meters to prohibit stealing, which seems impossible because in a way, stealing becomes necessary to reduce the already forced corruption by the government on citizens.
As government is forced to pay for the power sector through the budgets and compulsory tax collected, the amount that could have been used for progress in other sectors is wasted upon the already suffering power sector and that decreases the overall progress.
Will the Nuclear technology reduce the scarcity of power?
It is assumed that nuclear technology may increase the production of electricity and hence reduce the shortage, but it is not possible because the nuclear technology is a replacement for thermal and hydroelectric production. Thus, at one hand the production of electricity will be increased, at other hand, it will be decreased too while the basic reason for the shortage of electricity, that are government monopoly and regulation, price control and inflation, will remain unanswered.
The solution for the acute power shortage India is facing is to reduce the regulation and ultimately culminate the monopoly of government on power sector. If private bodies are allowed to invest in power sector freely with property rights, the production of electricity will increase manifolds; the wastage in supplying electricity will reduce to minimal. Because of competitive free market, the price for electricity will tend to decrease and that will promote the private electric service providers to increase the reach their facilities to more and more consumers at much lesser prices.
Furthermore, the producers and investors, in order to increase their profits will keep investing in innovating and inventing ways to increase progressive technology and production of electricity. As consumers will get their desired electric services at the genuine prices, the tendency to steal electricity will be reduced to minimal and that would further decrease the wastage to much extent.
Conclusion: The new 123 deal is hugely insufficient to solve the shortage of electricity in India. Indian government need to privatize the power sector and let the investors and entrepreneurs to invest in innovative ways and technology (including nuclear technology) to increase production of electricity and hence decrease the actual price of electricity for the consumers.

Footnotes:

1. Education For All, Reason For Liberty [↩]
2. Reason of Price Rise and Consequences of Price Control, Reason For Liberty [↩]