This paper addresses the issue of economical rural electrification. The aim of this report is to propose optimal electrification system design for rural areas, taking in consideration conventional drawbacks in design of the systems due to connectivity of remote villages with main grid considering the scope of future expansion and then to reduce the cost for the same and increase the attractiveness of grid extension as a means of bringing the benefits of electrification to rural populations. The study presents a variety of options for reducing the cost of grid extension, including the various techniques as mentioned. This paper has considered technical aspects for the same as well as optimization of energy for reliable, economical considering various Government Schemes and efficient rural electricity.