This paper by Girish Sant and Shantanu Dixit  was prepared as a component of the report of the Task Force on Narmada Valley Development Plan (NVDP), constituted by the Government of Madhya Pradesh state, to evaluate alternatives to NVDP. The paper takes a brief overview of the power sector crisis and suggests a three-step approach. This approach consists of immediate steps such as tariff rationalisation and supply-side efficiency improvements, intermediate steps such as implementation of least-cost integrated resource plan, and long term steps such as adoption of multi-sector approach covering land, water and energy.