It is a welcome move but is the shortage of diesel the actual reason? I don't think so because if we consider the increase in power consumption that would take place with the electrification, we would have to bear with acute (because it already exists) power shortage in future which will escalate the cost of electricity putting the common citizen into more trouble. As said in the above responses, the plan is still in the conception stage and we will have to wait and see whether it will materialize. With elections nearing, we may get to see more of such announcements. Instead of spending so much money in electrification, the government should think of improving the present infrastructure and other related facilities on priority.
'Our knowledge is a receding mirage in an expanding desert of ignorance'- Will Durant.