Efficient and reliable electricity supply is critical for economic growth. India is facing multiple challenges of meeting country's electricity requirement, finding suitable resource transition from depleting fossil fuels and addressing the concern of climate change. Economy of India is growing at a very fast pace in the world with increasing demand for electricity. Multi pronged sustainable development strategies in electricity sector that contribute to emission reduction per GDP as well as meets the growing demand for economic development of the country needs to be formulated. This research using System Dynamics has developed models for electricity demand and supply in the country with sustainability conditions from the years 1971 till 2041. Demand model, taking care of national missions like, 'Power for all by 2019' and transition to Electric vehicles. In order to meet the growing demand of electricity having per capita electricity consumption to be of the order of 3500 kWh by 2041 and 10% growth in electricity generation per year, the paper gives a supply model.