Public Finance and the Energy Sector in India

Herbert Stein’s “Law” is expressed as: “If something cannot go on forever, it will stop.” From a public finance perspective, India’s energy sector challenges now encompass its federal structure in an almost “symmetric” manner. The petroleum sector has become a fiscal morass for the central government, and the electricity sector in many states is equally problematic. But, unlike Delhi, states neither have recourse to RBI’s printing press for rupees nor can they “impound” the central bank’s foreign currency reserves.
http://www.brookings.edu/research/opinions/2011/12/27-india-energy-patel