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Why are Power Sector Reforms Important for the Poor ?
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Download the Full Report (241kb pdf)
 There is a wide body of evidence from India and around the world that shows that provision of electricity improves living standards, supports development and job opportunities, and fosters social activities.
The report says that these benefits are widely recognized by both urban and isolated rural households, which attach significant value to electricity access. Studies in India and elsewhere have consistently shown that most people are willing to pay a significant portion of their income for reliable electricity service. In India, this group includes small and marginal farmers (in this booklet, marginal farmers are defined as having up to 1 ha; small farmers between 1 and 2 ha; medium farmers between 2 and 5ha; and large farmers more than 5ha), who spend a greater share of their income than larger farmers for electricity to power irrigation pumps, but whose crop yields are severely affected by the unreliability and poor quality of supply. [For a discussion of why farmers in India are willing to pay more for improved supply, see the first booklet in this series, Improving the Lives of India's Farmers: How Power Sector Reforms Will Help, Energy Sector Unit, South Asia Region (World Bank 2002). For a more detailed discussion, see India: Power Supply to Agriculture (World Bank 2001).
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Contact for this report:
Mr. Lucio Monari: lmonari@worldbank.org
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