The Electricity Act, 2003, is a landmark legislation that restructured the power sector in India. The Act aims to consolidate the laws relating to generation, transmission, distribution, trading, and use of electricity.Section 7 of the Electricity Act, 2003, specifically deals with the "National Policy on electrification and local distribution in rural areas." It mandates the Central Government to consult with the State Governments and formulate a national policy concerning the objectives of electrification and the promotion of local distribution in rural areas. This policy guides the efforts of various stakeholders in ensuring access to electricity for all rural households.