The India Infrastructure Report 2004 has predicted state-owned power utilities will require funds to the tune of Rs 100,000 crore (Rs 1,000 billion) for cash needs and Rs 2,00,000 crore (Rs 2,000 billion) in investment over the next five years.

The report has said for successful reforms in the power sector, the fund requirements during the reform period should be fully met through various sources.

"The financial commitments made by different agencies will be more like 'financial closure' for reforms and will provide a solid base for reforms. If such a financial closure is achieved, the reforms will not be hampered or slowed," the report says.

While the privatisation of the Delhi power distribution body has been cited as a model, the report says the emulation of the Delhi experience in other parts of the country will depend on factors like the relative weightage assigned by local politics to the delivery of services and the quality of state governments' leadership.