Skip to main content

23% of Indians is still thirsting for electricity, US foundation calls it business opportunity

By Rajiv Shah 
At a time when the Government of India (GoI) has claimed that 99.4% of the country's villages have been electrified, but the GoI's powerful thinktank electrification, Niti Aayog, has pointed out that there are 304 million people who still lack access to electricity in its draft National Energy Policy (NEP), released in mid-2017, top US business interests have begun to see it as an opportunity.
Dr Rajiv J Shah, current president of the Rockefeller Foundation (RF), who served as administrator of the United States Agency for International Development (USAID) from 2010 to 2015, has strongly pitched for "the fundamental role of public-private partnership to lift millions of Indian households out of poverty" by providing them electricity.
Shah was speaking at the India Energy Access Summit in Delhi on February 12, following which, a day later, he met Niti Aayog vice-chairman Rajiv Kumar. At both the spots, he stressed on the need for strong private partnership in India to electrify the country's rural households, even as suggesting, this has been demonstrated by RF investing nearly $150 million over the last 20 years "to impact the lives of the most vulnerable people in India."
Regretting that in India a village is deemed electrified even if only 10 percent of homes and a few rural institutions are connected, the top US philanthropic organization, which is running Smart Power India project has "appreciated" that the draft NEP recognizes “a need to redefine the concept of ‘electrification’ with the village being deemed completely electrified if and only if all households of a village have an electricity connection, which witnesses reliable supply of electricity at least for a set number of hours”.
Meanwhile, a writeup published in RF site and published as a blog, which Shah particularly focussed upon, has said, "The hope is that the 'set hours, will cover daily needs", adding, "With 23% of India’s population still thirsting for electricity and millions more receiving only poor and unreliable access, it would seem that India needs to rapidly add generation capacity."
Dr Rajiv J Shah
"However", the RF blog says, "This too presents a contradiction, in that India has significant generation capacity idling, with an aggregate capacity utilization of about 60%. So why not just d https://www.rockefellerfoundation.org/blog/24x7-power-access-not-electrification/ irect the unused capacity to meet rural demand? Problem solved, right?", it asked.
"Simply put, it is not viable to distribute the access to the people who need it. Rural electricity supply and service costs are prohibitively high, while rural demand density is low and fragmented", the blog says, adding, "Furthermore, pilferage and losses are high and the tariffs are well below delivered cost. This is a huge disincentive for India’s debt-plagued state-owned distribution companies (DISCOMs)."
"The challenge is so large that a portfolio of approaches needs to be tested and deployed", the blog opines, adding, "New models of electricity distribution are emerging. In nearly 110 villages across Uttar Pradesh, Bihar and Jharkhand state, more than 40,000 people have access to reliable grid-quality electricity from privately operated renewable energy mini-grids supported by RF's Smart Power India programme."
Pointing out that the draft NEP has also stressed the "need to incentivize the mini-grid sector by encouraging independent developers and supporting them to scale", the blog stresses, "Privatizing electricity distribution has proven successful in some Indian metros in improving quality, reliability, collection and loss reduction."
It adds, "More private players can be attracted to scale up mini-grid deployment if the government announces a national target for mini-grids along with a package of incentives. More importantly, public-private partnership pilots for rural electrification need to be modeled and tested in partnership with existing state DISCOMs to address the access challenge."
"Such partnerships forged in rural electrification can unleash on a large scale innovative business models, new technologies and operational efficiencies to make a breakthrough in bridging India’s chronic energy access gap. It could help realize the national goal of “24×7 Power for All” by 2022", it believes.

Comments

TRENDING

Plastic burning in homes threatens food, water and air across Global South: Study

By Jag Jivan  In a groundbreaking  study  spanning 26 countries across the Global South , researchers have uncovered the widespread and concerning practice of households burning plastic waste as a fuel for cooking, heating, and other domestic needs. The research, published in Nature Communications , reveals that this hazardous method of managing both waste and energy poverty is driven by systemic failures in municipal services and the unaffordability of clean alternatives, posing severe risks to human health and the environment.

Economic superpower’s social failure? Inequality, malnutrition and crisis of India's democracy

By Vikas Meshram  India may be celebrated as one of the world’s fastest-growing economies, but a closer look at who benefits from that growth tells a starkly different story. The recently released World Inequality Report 2026 lays bare a country sharply divided by wealth, privilege and power. According to the report, nearly 65 percent of India’s total wealth is owned by the richest 10 percent of its population, while the bottom half of the country controls barely 6.4 percent. The top one percent—around 14 million people—holds more than 40 percent, the highest concentration since 1961. Meanwhile, the female labour force participation rate is a dismal 15.7 percent.

The greatest threat to our food system: The aggressive push for GM crops

By Bharat Dogra  Thanks to the courageous resistance of several leading scientists who continue to speak the truth despite increasing pressures from the powerful GM crop and GM food lobby , the many-sided and in some contexts irreversible environmental and health impacts of GM foods and crops, as well as the highly disruptive effects of this technology on farmers, are widely known today. 

Swami Vivekananda's views on caste and sexuality were 'painfully' regressive

By Bhaskar Sur* Swami Vivekananda now belongs more to the modern Hindu mythology than reality. It makes a daunting job to discover the real human being who knew unemployment, humiliation of losing a teaching job for 'incompetence', longed in vain for the bliss of a happy conjugal life only to suffer the consequent frustration.

UP tribal woman human rights defender Sokalo released on bail

By  A  Representative After almost five months in jail, Adivasi human rights defender and forest worker Sokalo Gond has been finally released on bail.Despite being granted bail on October 4, technical and procedural issues kept Sokalo behind bars until November 1. The Citizens for Justice and Peace (CJP) and the All India Union of Forest Working People (AIUFWP), which are backing Sokalo, called it a "major victory." Sokalo's release follows the earlier releases of Kismatiya and Sukhdev Gond in September. "All three forest workers and human rights defenders were illegally incarcerated under false charges, in what is the State's way of punishing those who are active in their fight for the proper implementation of the Forest Rights Act (2006)", said a CJP statement.

Urgent need to study cause of large number of natural deaths in Gulf countries

By Venkatesh Nayak* According to data tabled in Parliament in April 2018, there are 87.76 lakh (8.77 million) Indians in six Gulf countries, namely Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates (UAE). While replying to an Unstarred Question (#6091) raised in the Lok Sabha, the Union Minister of State for External Affairs said, during the first half of this financial year alone (between April-September 2018), blue-collared Indian workers in these countries had remitted USD 33.47 Billion back home. Not much is known about the human cost of such earnings which swell up the country’s forex reserves quietly. My recent RTI intervention and research of proceedings in Parliament has revealed that between 2012 and mid-2018 more than 24,570 Indian Workers died in these Gulf countries. This works out to an average of more than 10 deaths per day. For every US$ 1 Billion they remitted to India during the same period there were at least 117 deaths of Indian Workers in Gulf ...

Jayanthi Natarajan "never stood by tribals' rights" in MNC Vedanta's move to mine Niyamigiri Hills in Odisha

By A Representative The Odisha Chapter of the Campaign for Survival and Dignity (CSD), which played a vital role in the struggle for the enactment of historic Forest Rights Act, 2006 has blamed former Union environment minister Jaynaynthi Natarjan for failing to play any vital role to defend the tribals' rights in the forest areas during her tenure under the former UPA government. Countering her recent statement that she rejected environmental clearance to Vendanta, the top UK-based NMC, despite tremendous pressure from her colleagues in Cabinet and huge criticism from industry, and the claim that her decision was “upheld by the Supreme Court”, the CSD said this is simply not true, and actually she "disrespected" FRA.

Stands 'exposed': Cavalier attitude towards rushed construction of Char Dham project

By Bharat Dogra*  The nation heaved a big sigh of relief when the 41 workers trapped in the under-construction Silkyara-Barkot tunnel (Uttarkashi district of Uttarakhand) were finally rescued on November 28 after a 17-day rescue effort. All those involved in the rescue effort deserve a big thanks of the entire country. The government deserves appreciation for providing all-round support.

'Restructuring' Sahitya Akademi: Is the ‘Gujarat model’ reaching Delhi?

By Prakash N. Shah*  ​A fortnight and a few days have slipped past that grim event. It was as if the wedding preparations were complete and the groom’s face was about to be unveiled behind the ceremonial tinsel. At 3 PM on December 18, a press conference was poised to announce the Sahitya Akademi Awards .