I agree that power shortage is real, but what PM Modi is trying to achieve is spreading electricity to all parts of India.There are still millions in India without access to power, so the scheme is about giving them an electricity connection.
It remains to be seen where the power to 'electrify' all households come from and who'll actually foot the bill for the 'free' connections and the lifetime free electricity.'
I don't think the later part of this statement is true, govt is only providing free connection not free electricity.
Also, India is 3rd largest producer of power after China and USA, however it stands 105 when it comes to per capita consumption. The problem in India is not power supply, its the transmission, India hasn't invested much on transmission lines, as a result its paying the price now.