As in the rest of the country, the power supply in Rajasthan has fallen short of the increasing demand for power. However, the industrial sector is given priority for power supply and there have been no power cuts on industry since 1988 except for a brief spell in 1994. Many of the larger industrial units invest in adequate diesel power generating capacity to tide over the poser shortage problem. While a No Objection Certificate (NOC) is required from RSEB for installing DG Sets, such clearance is granted within 15 days.

The development of power sector has been accorded highest priority in the State and about 28% of the State's Plan resources have been allocated for this sector.

The total installed generating capacity stood at 3009.715 MW as on March, 1995. To keep pace with the increasing demand for power, priority has been accorded to augmenting power supply in the state. An additional allocation of 620 MW of power has been received from the central power generating stations, which would be available upto 1997. It is expected that an additional 545 MW of generating capacity will be added within the State by 1997.

The State Government has recently floated global tenders inviting offers from private parties for setting up lignite based thermal power plants. The power generating capacity from lignite resources is estimated at 2240 MW. The State Government is also actively seeking private investment in power projects in line with the new Central policy of attracting private investment in the power sector.

The State Government is also encouraging industrial units to set up captive power plants. The surplus power generated by captive power plants would be purchased by the Rajasthan State Electricity Board (RSEB) on mutually agreed terms. RSEB also permits Wheeling of power through its grid in the case of captive power plants located at a distance from the consumption point.