Human Development in India - NCAER

household assets and amenities 65Figure 5.5Source: IHDS 2004–5 data.LPG Use by Income and Place of Residenceseveral reasons for this difference. First, the Rajiv GandhiGrameen Vidyutikaran Yojna has made significant investmentsto increase rural electrification, so the electrificationrate has been rising during the intervening years. Second,the IHDS includes non-standard and unofficial connections.Many of households may have illegal connections, a practicethat is quite common in rural India. These householdsmay not report their illegal connection to the Census, whichis an official arm of the government. It is also likely thatthe electrification rate may be underreported in the IHDS,as well.The central government has financed much of theelectricity development, but the actual delivery of electricityto consumers is primarily a state responsibility. Therefore,the enormous statewise variations in electrification,especially in rural areas, are not surprising. In HimachalPradesh, a well-managed state with extensive hydroelectricityproduction, virtually all households have electricity,including 98 per cent of rural households. The highly developedstates of Punjab, Jammu and Kashmir, and Haryanaalso have achieved rural connection rates greater than 90per cent. All states in the south have rates of rural electrificationgreater than 80 per cent. In contrast, the poor stateshave low rates of rural electrification: only 29 per cent ofBihar villagers have electricity. Orissa (36 per cent) andUttar Pradesh (34 per cent) are only slightly better off. Eventhe more affluent households in these states often lack electricity.Electrification, like all household amenities, dependsnot only on how wealthy a household is but also on howwealthy the neighbours are.Although most urban households (94 per cent) haveelectricity, for urban dwellers the problem is the poor reliabilityof the electricity supply. Only 25 per cent of householdsin urban India report a steady supply of electricity24 hours a day, and as many as 18 per cent of urban consumershave 12 or fewer hours of electricity each day (see Figure5.6).Inadequate supply is an even bigger problem for ruralhouseholds: only 6 per cent have a steady 24 hour supply,another 26 per cent have only twelve or fewer hours, andabout 37 per cent do not have any electricity service.It is the poor who suffer the most from the lack of accessto electricity. Poverty is related to low access to electricity intwo ways. First, poverty at individual as well as state levelreduces access to electricity. Second, low access to electricityreduces income growth. Poor households find it difficult topay for a connection and monthly charges. Poor states findit difficult to ensure supply to remote areas. However, theabsence of electricity also affects income growth. Many homebased businesses, particularly those run by women, suchas tailoring or handicraft, may be more feasible if electricFigure 5.6Source: IHDS 2004–5 data.Household Access to Electricity byPlace of Residence