This paper (by Girish Sant and Shantanu Dixit, in Energy For Sustainable Development, The Journal of International Energy Initiative, Vol. IV, No 1, June 2000) is based on the exercise of drawing a detailed least cost power sector plan (LCP) carried out between 1992-94 for the state of Maharashtra in western India. The exercise considers four decentralised generation options and nine demand-side-management (DSM) options, apart from conventional coal and large hydro options for meeting the power needs of the state in the decade of 1991 to 2001. The tolls of Life Cycle Costing and Screening Curves are used to evaluate the costs of different options. Further, the plan aims at achieving 100% household electrification by the terminal year. The analysis shows that it is possible to meet about 55% of the incremental demand by using the cost effective DSM and de-centralised generation options. In effect, the integrated approach in the LCP is capable of achieving financial savings of about 33 % compared to the conventional plan for meeting the same quantity of demand for energy services.