World Bank’s Electricity

News

Good News: India Climbs 73 Spots In World Bank’s Electricity Accessibility List

The Logical Indian Crew

May 18th, 2017

SHARES

Courtesy: Economic Times | Image Credit: News Hunt | Times Now

India has climbed up to the 26th position in World Bank’s electricity accessibility ranking – up 73 spots from the 99th rank in 2014.

The ranking list tracks the procedures, time, and cost required for a business to obtain a permanent electricity connection for a newly constructed warehouse. In addition to assessing efficiency of connection process, reliability of supply and transparency of tariff index measures reliability of power supply and transparency of tariffs and the price of electricity. The most recent round of data collection for the project was completed in June 2016.


Datadoingbusiness

The entire World Bank ranking can be read here.

Power Minister Piyush Goyal was ecstatic about the development. He said, “Our ranking has improved to 26 position from 99. So, it is truly very redeeming feature and satisfying for me that Prime Minister’s vision particularly to take electricity to every home, particularly to make electricity access very easy, particularly to make energy affordable is being furthered very rapidly.”

Mr Goyal also exuded confidence that by 2019, three years ahead of its original schedule, the government would able to take power to every household. He said that the government was closely working with the states to see that electricity was made available on tap.

“A person should be able to apply for electricity connection. If there is infrastructure available… get it in 24 hours. If an infrastructure needs to be created he should get in less than one week,” the minister said.

The government’s rural electrification programme is proceeding swiftly, with over 13,000 villages electrified out of a total of 18,452 and is on track for completion within the targeted 1,000 days.


The World Bank list

Doing Business records all procedures required for a business to obtain a permanent electricity connection and supply for a standardiSed warehouse. These procedures include applications and contracts with electricity utilities, all necessary inspections and clearances from the distribution utility and other agencies, and the external and final connection works. The questionnaire divides the process of getting an electricity connection into distinct procedures and solicits data for calculating the time and cost to complete each procedure.

The ranking list tracks the procedures, time, and cost required for a business to obtain a permanent electricity connection for a newly constructed warehouse. In addition to assessing efficiency of connection process, reliability of supply and transparency of tariff index measures reliability of power supply and transparency of tariffs and the price of electricity. The most recent round of data collection for the project was completed in June 2016.

This is important because infrastructure services (or lack thereof) are a major concern for businesses around the world. Unreliable electricity supply and high tariffs, in particular, can be hurdles to entrepreneurial activity. According to 2016 World Bank Enterprise Survey data for 139 economies, business owners find electricity services as the third biggest obstacles to their activities.


Doing Business measures the connection process at the level of distribution utilities.DoingBusiness

The entire World Bank ranking can be read here.

 

Share your thoughts

Related post

Loading...