>The 2004 Lok Sabha election results saw a dramatic shift of power at the union level from the NDA to UPA. Much of the debate in the media is consequently centered around the impact of this political shift on economic reform process and social sector policies. But the real impact of this election is on States. With the defeat of ruling parties in Andhra Pradesh, Tamil Nadu and Karnataka, there has been a marked shift of policy in power sector. In many ways, the fiscal and industrial future of states depends on the management of power sector.