Electricity links agricultural pumping, cold storage, manufacturing, transport and household welfare. The price paid by a consumer may differ from the cost of supply because tariffs, subsidies and cross-subsidies intervene. Free or subsidised power is a budget and utility-finance question as well as a farm policy. A farmer may gain from affordable power while a distribution company still needs predictable compensation and technical loss control.

Distinguish generation, transmission and distribution. A new generating unit does not automatically solve a local feeder bottleneck. A transmission line can carry large power flows, but low-voltage distribution and transformers determine village reliability. Renewable energy adds resource and timing questions: solar output changes with daylight, wind output varies, and storage or flexible generation helps balance demand. For economy questions, identify both capacity and actual delivery.

The 2026-27 Budget at a Glance gives an Energy sector allocation of ₹13,934.25 crore. This is a fiscal classification, not a count of megawatts or the total capital invested by public and private utilities. If a current-affairs question quotes a new energy policy, check whether it describes installed capacity, target capacity, procurement or an approved project. Those are different milestones.

Worked example: Consider a farmer using an electric pump and a food processor needing cold storage. A generation plant adds power capacity, transmission moves bulk electricity, and the local distribution feeder determines usable supply at each site. A subsidy changes the price paid but does not repair a failed transformer. For a budget question, separate the amount provided for power support from physical indicators such as outage hours or installed megawatts.

Active recall: Compare generation, transmission and distribution. Explain why an energy subsidy has to be recorded and financed.