<Li> Targeted expansion in access to electricity for rural households in the desired timeframe can be achieved if the distribution licensees recover at least the cost of electricity and related O&M expenses from consumers, except for lifeline support to households below the poverty line who would need to be adequately subsidised . Subsidies should be properly targeted at the intended beneficiaries in the most efficient manner . Government recognises the need for providing necessary capital subsidy and soft long - term debt finances for investment in rural electrification as this would reduce the cost of supply in rural areas . Adequate funds would need to be made available for the same through the Plan process . Also commensurate organisational support would need to be created for timely implementation . The Central Government would assist the State Governments in achieving this . </Li> <Li> Necessary institutional framework would need to be put in place not only to ensure creation of rural electrification infrastructure but also to operate and maintain supply system for securing reliable power supply to consumers . Responsibility of operation & maintenance and cost recovery could be discharged by utilities through appropriate arrangements with Panchayats, local authorities, NGOs and other franchisees etc . </Li> <Li> The gigantic task of rural electrification requires appropriate cooperation among various agencies of the State Governments, Central Government and participation of the community . Education and awareness programmes would be essential for creating demand for electricity and for achieving the objective of effective community participation . </Li> <P> The electricity industry was restructured by the Electricity Act 2003, which unbundled the vertically integrated electricity supply utilities in each state of India into a transmission utility, and a number of generating and distribution utilities . Electricity Regulatory Commissions in each state set tariffs for electricity sales . The Act also enables open access on the transmission system, allowing any consumer (with a load of greater than 1 MW) to buy electricity from any generator . Significantly, it also requires each Regulatory Commission to specify the minimum percentage of electricity that each distribution utility must source from renewable energy sources . </P>

Use of conventional sources of energy in india