Annual Target of Electrifying 7000 Villages Achieved

•  The government has achieved its annual target of electrifying 7000 villages during this (2015-16) fiscal year under Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY).
• Power Ministry had envisaged electrifying 7,000 villages by the end of fiscal 2016. As many as 7,008 villages have been electrified out of total 18,452 un-electrified villages as per GARV dashboard indicating the government's performance under DDUGJY.

About Deen Dayal Upadhyaya Rural Electrification Scheme:

• The major components of the scheme are feeder separation; strengthening of sub-transmission and distribution network; Metering at all levels (input points, feeders and distribution transformers); Micro grid and off grid distribution network & Rural electrification- already sanctioned projects under RGGVY to be completed.
• The full scheme entails an investment of Rs 43,033 crore which includes the requirement of budgetary support of Rs. 33,453 crore from GOI over the entire implementation period.
• All Discoms including private Discoms and State Power Departments are eligible for financial assistance under this Scheme.
• Discoms will prioritize strengthening of rural infrastructure work considering specific network requirement and will formulate Detailed Project Reports (DPRs) of the projects for coverage under the Scheme. Rural Electrification Corporation (REC) is the Nodal Agency for operationalization of this Scheme. It will furnish monthly progress reports on the implementation of the scheme indicating both financial and physical progress to Ministry of Power and Central Electricity Authority.
• The Monitoring Committee under the Chairmanship of Secretary (Power) will approve the projects and also monitor implementation of the scheme. Suitable Tripartite Agreement will be executed between REC as the Nodal Agency on behalf of Ministry of Power, the State Government and the Discom to ensure implementation of the scheme in accordance with the guidelines prescribed under the scheme. Bipartite agreement will be executed in case of State Power departments.
• Projects under this Scheme will be completed within a period of 24 months from the date of issue of Letter of Awards by the utility.
• Grant portion of the Scheme is 60% for other than special category States (up to 75% on achievement of prescribed milestones) and 85% for special category States (up to 90% on achievement of prescribed milestones). The milestones for the additional grant are: timely completion of the scheme, reduction in AT&C losses as per trajectory and upfront release of subsidy by State govt. All North Eastern States including Sikkim, Jammu & Kashmir, Himachal Pradesh and Uttrakhand are included in special category States

Analysis:
Why this scheme

• The rural agricultural and non-Agriculture consumers of the country are generally serviced through the local distribution network. Many rural areas of the country face insufficient electricity supply, consequently the distribution utilities are forced to resort to load shedding, thus affecting the power supply to both Agriculture and non-Agriculture consumers.
• The demand of power in rural areas is increasing day by day due to changing consumer base, improving living standards for which augmentation of rural infrastructure needs to be regularly undertaken
• The investment in the distribution network is low due to bad financial health of the distribution companies. Therefore in order to augment the reliability and quality of supply distribution network needs to be strengthened.
• To improve the commercial viability of power distribution, there is need for metering of all categories of the consumers

Benefits from the scheme

• Increase in agriculture yield
• Business of Small and household enterprises shall grow resulting into new avenues for employment
• Improvement in Health, Education, Banking (ATM) services
• Improvement in accessibility to radio, telephone, television, internet and mobile etc
• Betterment in social security due to availability of electricity
• Accessibility of electricity to schools, panchayats, hospitals and police stations etc
• Rural areas shall get increased opportunities for comprehensive development

Challenges:

• High cost of grid extension and low recovery due to highly subsidised tariff, low level of tariff collection resulting in negative return
• Supply rationing due to non-availability of power
• High operation and maintenance costs

By: Vishal