In the past two decades, India achieved commendable progress in the electricity sector. Progressive policy initiatives, increased focus on alternative sources of energy, and government interventions both at the Central and State level changed the face of the electricity industry in India. The government’s flagship programs such as Saubhagya and Deen Dayal Upadhyay Gram Jyoti Yojana ensured electricity access to more than 750 million people in the past two decades. As a result, India achieved 100 percent universal electrification in 2018.
Reliable Power: An enabler for India’s Economic Aspirations
The Economic Survey 2018-19, however, pointed out that India still lags behind significantly in energy usage as compared to the global average. India needs to increase its per capita energy consumption by at least 2.5 times to accelerate its real per capita GDP to $5000. This will further aid India’s journey to an upper-middle-income country as energy consumption is closely linked to economic growth. As India seeks to embrace a new phase of growth in the electricity sector, access to reliable power holds the key to its economic and social development.
Reliable electricity motivates people to invest more in electrical appliances which then increases household electricity consumption. But unreliable power supply and the long duration of power cuts in India not only impacts the overall electricity consumption but also discourages prospective customers from taking new grid-connections.