A Study in UP and MP V Ranganathan T V Ramanayya RURAL electrification was once the 'pet' project of global funding agencies. The World Bank had invoked Hirschman to support the thesis that investment in basic infrastructure projects like rural electrification will lead to induced investment in other direct private sector projects by depressing their costs that would have to be incurred otherwise. However, over the years there has been considerable disen- chantment that the promised benefits have been elusive and so it should be left to the market when increased income will create the demand for electrification.
