Resource detail

Electricity is an essential requirement for all facets of our life. It has been recognized as a basic human need. It is a critical infrastructure on which the socio-economic development of the country depends. Supply of electricity at reasonable rate to rural India is essential for its overall development. Electricity Act, 2003 provides an enabling framework for accelerated and more efficient development of the power sector. The Act requires the Central Government to formulate, inter alia, the National Electricity Policy in consultation with the Central Electricity Authority (CEA) and State Governments.

The National Electricity Policy aims at laying guidelines for accelerated development of the power sector, providing supply of electricity to all areas and protecting interests of consumers and other stakeholders keeping in view availability of energy resources, technology available to exploit these resources, economics of generation using different resources, and energy security issues.

The National Electricity Policy aims at achieving the following objectives: (i) access to electricity - available for all households in next five years; (ii) availability of power - demand to be fully met by 2012; (iii) supply of reliable and quality power of specified standards in an efficient manner and at reasonable rates; (iv) per capita availability of electricity to be increased to over 1000 units by 2012; (v) minimum lifeline consumption of 1 unit/household/day as a merit good by year 2012; (vi) financial turnaround and commercial viability of electricity sector; (v) protection of consumers’ interests.

The policy seeks to address the following issues: (i) rural electrification; (ii) generation – hydro, thermal, nuclear, non-conventional energy sources, renovation and modernization, captive generation; (iii) transmission; (iv) distribution; (v) recovery of cost of services and targetted subsidies; (vi) technology development and R&D; (vii) competition aimed at consumer benefits; (viii) financing power sector programmes including private sector participation; (ix) energy conservation; (x) environmental issues; (xi) training and human resource development; (xii) cogeneration and non-conventional energy sources; (xiii) protection of consumer interests and quality standards.