Report on Evaluation of the Rural Electrification Programme Programme Evaluation Organisation Planning Commission Government of India

Abstract

Electricity is a powerful instrument of economic and social development. In the rural areas, it can bring about far-reaching changes in methods of irrigation and farming, and create conditions for the growth of industries and commerce and the provision of amenities generally associated with urban areas. Indeed, the impact of electrification may go even deeper. It can operate as a strong force for the introduction of ‘urbanism’ in the rural communities and thus reducing the rural-urban ‘distance’. It is because of these direct and indirect potentialities of electricity that there is a general demand for electrification of rural places. This demand has been increasing in intensity and, of late, has become specially strong, amounting almost to a pressure. While the potentialities of electrification for rural development are undeniable, these need to be understood and evaluated in the context of competing claims on limited resources. There is the cost of electrification to be carefully weighed in relation to the likely level of energy use and returns. The potential demand for different categories of use and the time horizon of its development need to be taken into account, especially against the background of shortage of electric power in the country. There are also other considerations. In other words, both benefits and costs need to be carefully worked out in the light of the available experience with rural electrification in the country. Such an appraisal and assessment should provide a rational basis for a decision on the scope and growth of this programme.