There have been certain recent, major legislative and governmental initiatives in India, aimed at reforming the energy sector, viz: 

The Energy Conservation Act, 2001

The Electricity Act 2003

The National Electricity Policy, 2005

Ministry of New and Renewable Energy had taken the initiatives to develop grid connected power plants from renewable sources. Power from renewables is infirm depending on the vagaries of seasonal changes. Major thrust areas of grid connected power were biomass, bagasse based cogeneration, small hydro and wind.

Rural areas of India are characterised by very low per capita energy consumption and in most places commercial energy like electricity is not available. Thus, it is a matter of concern that 60% of rural households still use kerosene for lighting. Besides, 180 million tons of biomass is used in rural areas for cooking through very inefficient and smoky stoves. Cooking and lighting energy constitute 75% of total energy used in rural areas. Jan-Mar 2005

According to the 2001 census, about 43.5% of the households have been provided with electricity connections. This has gone up from 30.5% at the time of the 1991 census. The vast majority of rural population, however, still has no access to electricity and is dependent on kerosene lamps and lanterns. Jan-Mar 2005