This Discussion Paper analyses issues faced by the distribution sector and evaluates the subsequent reforms vis-a-vis their effectiveness in dealing with the issues. It explains the prereform scenario of the power distribution sector in order to trace the evolution of problems faced by the sector. The paper analyses the policy design and provisions of the Ujwal DISCOM Assurance Yojana (UDAY) through the lens of the prevalent political economy dimension within, which the policies are to be implemented and comments on its potential impact on the sector.