I think the primary concern here is to first provide electricity to the quarter of the population who are not connected to the grid.
The population who are not having electricity in India is either because they live in a remote place where there is no connection or they are too poor to afford electricity. So what they need now is electricity, so their children can study in a better lit room.
Air conditioners and toasters are still considered a luxury by a majority of the population.
If executed properly, I think this initiative will really make a change.