India is a leading developing country in providing electricity to rural and urban populations. By late 2012, the national electricity grid had reached 92 percent of India's rural villages, or about 880 million people. Yet, approximately 311 million people-mostly those in rural areas-still live without electricity. Less than half of all households in the poorest income group have electricity. Even among households with electricity, hundreds of millions lack reliable supply and experience power cuts almost daily. Achieving universal access to electricity by 2030 is not fi nancially prohibitive...

India is home to one of the world's largest populations without electricity access. Traditionally, the Government of India has extended rural electrification using two instruments: consumption subsidies and free connections to households below the poverty line (BPL). This study centers on subsidies for electricity consumption, examine their size, frequency, and distribution to households. It uses poverty as a lens through which to focus more closely on these concepts, asking such questions as how well subsidies are targeted to BPL households. The study findings demonstrate that subsidies...