The study examines the impact of the power sector reforms on the electricity generation industry at the state level in India through a case study of the state of Gujarat. The state has been selected as a unit of study to bring out the regional variances that are not captured at a more aggregate or country level study. The study finds that the reforms have led to the emergence of various ownership structures with associated changes in fuel mix and technology. There has been a steady improvement in the efficiency of generation with reduction in carbon intensities. The carbon intensities so obtained are then used for construction of a baseline for the state, which is then projected up to the year 2010. The study reports a considerable decline in the baseline, which is expected to touch 0.18 Kg per kWh in 2010.. With the projected growth in the share of imported coal and natural gas, the dominance of domestic coal based generation is projected to decline and the state is expected to proceed along a path of declining carbon intensities.