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The legislative Assembly of Rajasthan approved the Rajasthan Power Sector Reforms Bill (Reform Bill) on September 25,1999. The reform bill received the Presidential Assent on December 28,1999 and became effective from June 1, 2000. As the first initiative in implementing the reforms program, GoR established Rajasthan Electricity Regulatory Commission (RERC) in January 2000. The vertically integrated monopoly power utility RSEB was unbundled into new entities on 20th July 2000, based on functional specialization, namely:

* Rajasthan Rajya Vidyut Utpadan Nigam Limited(RVUN), to operate and maintain the existing state owned power stations

* Rajasthan Rajya Vidyut Prasaran Nigam Limited (RVPN), to undertake the function of transmission and bulk supply of electricity in Rajasthan and also own the rights in shared inter-state partnership projects

* The distribution function was separated from RSEB and vested into three Distribution Companies, registered under the Companies Act namely, Jaipur Vidyut Vitran Nigam Limited, Ajmer Vidyut Vitran Nigam Limited and Jodhpur Vidyut Vitran Nigam Limited.

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