The programme was launched in the beginning of 2002 under the supervision of the Central government. A new structure of the programme is now being developed that would incorporate disincentives if state governments do not follow certain reform benchmarks.

Central funds to state governments under the power reforms programme would critically depend on how soon these systems are put in place. It would be mandatory for state electricity boards to enter into agreements with the power ministry assuring that such systems would be set up within three years, the official said.

Analysts were bullish on the initiative. Information technology major HCL is undertaking a pilot project to in Delhi and Bangalore for efficient power supply management.

"Technology eliminates the last man in the queue through automatic meter reading, billing and collection," said George Paul, executive vice president of HCL Infosytems. "Remote disconnecting for defaulters will also be possible through appropriate IT applications." Ratan Tata-headed Investment Commission has also recommended the use of technology to reduce theft. "Target 100 per cent digital metering to prevent tampering," the commission said in its latest report to the government.