Expanding energy access to the rural population of India presents a critical challenge for its government. The presence of 364 million people without access to electricity and 726 million who rely on biomass for cooking indicate both the failure of past policies and programs, and the need for a radical redesign of the current system. We propose an integrated implementation framework with recommendations for adopting business principles with innovative institutional, regulatory, financing and delivery mechanisms.

India's rural energy challenges are formidable with the presence of majority energy poor. In 2005, out of a rural population of 809 million, 364 million lacked access to electricity and 726 million to modern cooking fuels. This indicates low effectiveness of government policies and programs of the past, and need for a more effective approach to bridge this gap. However, before the government can address this challenge, it is essential that it gain a deeper insight into prevailing status of energy access and reasons for such outcomes. Toward this, we perform a critical analysis of the dynamics of energy access status with respect to time, income and regions, and present the results as possible indicators of effectiveness of policies/programmes.

India's energy crisis is defined by the fact that the major share of its rural population is energy poor. Energy poverty, indicated by the lack of access to modern energy services, is a direct outcome of income poverty. The poor cannot afford to pay for the services of the modern energy carriers and they live in sub-standard buildings/houses, which are unfit to be connected to the modern energy systems. Similarly, any poor nation will be constrained by inadequate access to both energy and financial resources, and therefore will be unable to build an adequate infrastructure that would facilitate connectivity to modern energy carriers.

Expanding energy access to the rural population of India presents a critical challenge for its government. The presence of about 364 million people without access to electricity and about 726 million who rely on biomass for cooking indicate both the failure of past policies and programs, and the dire need is for a radical redesign of the current system that will address the need to expand energy access for these people.