The document discusses smart grids, which integrate information and communication technology into the existing electricity grid to increase reliability, security, and efficiency while reducing environmental impacts. It compares the existing grid, which uses electromechanical and one-way communication, to the smart grid, which uses digital communication and sensors for self-monitoring and restoration. The smart grid works by integrating distributed energy sources and using continuous monitoring for fault prevention and control. This improves energy conservation during transmission, distribution, and transformation. India faces electricity demand and deficit issues that smart grids could help address through their advantages and various pilot projects.