RURAL ELECTRIFICTION IN INDIA: CHALLENGES AND STRATEGIES

Rural electrification is a critical ingredient for rural development process. Efficient provision of electricity contributes to poverty reduction by acting as a catalyst for industrial growth and enhancing agricultural productivity. Being central to basic human needs of health and education; it has significant impact on quality of life in the rural areas. Despite this strong and well established link between devel opment and electricity provision, it is ironic that India’s track record with regard to rural electrification has been far from impressive. After nearly seven decades of Independence, 68.84% of the country's population which lives in rural areas still does not have adequate access to electricity. Recent policy initiatives have however given the much needed thrust to electrification process in rural India. A significant attempt has been made to place electricity in the holistic picture of rural development. Rapid expansion of rural electrical power distribution network in India has presented several financial and technical problems. Due to low tariff, the revenue realization is not commensurate with heavy investments made on infrastructure. The system efficie ncy is also poor, resulting in high power losses and poor reliability of supply. The system deficiencies are largely the result of poor planning and use of inappropriate distribution practices. This study has highlighted the need to confront these challeng es by adopting innovative strategies to upgrade system efficiency and to optimise future investment in this important development programme