The present paper endeavors to evaluate the impact of e-government applications in basic infrastructure and public utilities for which a model is developed to show that e-government has its roots in democratic values where the two reinforce each other. The model is then tested in the power sector in India using qualitative analysis. A comparative analysis of two players in the power sector, one from public sector and other from private has been made to derive conclusions and draw recommendations. Combination of research tools such as, structured survey, unstructured interviews, observations and secondary source study have been used. A major finding is that the public sector player should speed up the implementation of e-government in its operations especially to improve user-interface and to ensure competitiveness.