I'm not sure how the Indian government is involved with the power industry, but in nearly all countries electric power is either completely controlled by the government or highly regulated by the government. So unfortunately, proper organization and planning falls on some branch of the government (which you say is useless).
From what I have read about India's power shortages, the problem appears to be that the infrastructure in place now requires a major upgrade to keep up with growing populations and a growing economy. I have also read about a strange decison to give farmers free electric power that resulted in large increase in electricity demand from the farm sector (no surprise there).
So despite the fumbling on the part of the policy makers, the private sector can alleviate the problems by doing three things.
1) Being careful not to waste any electricity and buying efficient products.
2) Participating in "distributed generation" where individuals and businesses produce their own power via on-site sources such as solar, wind or natural gas. This might not be an option in India, though. In the USA, electric companies are required by law to accomodate individuals if they produce their own electricity and pay them for any excess electricity they generate.
3) Writing to the gov't policy-makers or those in charge of electrical grid planning to voice your concerns.
Those three things can substantially help solve the power shortages that you are experiencing. BUT, they require a lot of people to help get involved.
As far as the power sector being deemed a dying sector, that is kind of unfortunate. Without a strong and consistent source of electric power, whole industries can fall behind schedule due to outages. Electric power is something we take for granted, but it forms the backbone of almost all modern industry and contributes to a high standard of living.