India had its first act on Power Sector in 1910. Till 1991, lack of significant structural changes and achievements has labeled these 80 years as nascent stage for Indian Power Sector. In 1991, various reforms were initiated by the Government to deal with the shortage of power and to attract private investment. Though further reforms initiated by Electricity Act 2003 attempted to address many issues of the Indian power sector; losses and bad financial health of distribution sector is still an area of concern. To manage the distribution segment in more efficient way there is a need of third generation reforms. This paper critically evaluates the salient features of Electricity Act 2003, present scenario of Indian Power Sector with special emphasis on distribution losses and the concern areas which are plaguing the sector. The review also foresees the role of Electricity Amendment Bill 2014 in the introduction of retail in India by separating distribution business from supply business.