(Ministry of Power Office Memorandum No. 44/19/2004-D(RE) dated 18th March 2005)


     Sub : Rajiv Gandhi Grameen Vidyutikaran Yojna Scheme of Rural Electricity Infrastructure and Household
             Electrification

  1. Approval of the President is conveyed for the Rajiv Gandhi Grameen Vidyutikaran Yojna Scheme of Rural Electricity  Infrastructure and Household Electrification for the attainment of the National Common Minimum Programme (NCMP)  goal of providing access to electricity to all households in five years.

  2. Scheme would be implemented through the Rural Electrification Corporation (REC).

  3. Ninety per cent capital subsidy would be provided for overall cost of the projects under the scheme.

  4. The present approval is for implementation of Phase I of the scheme for capital subsidy of Rs.5000 crores during the 10th Plan period.

  5. States must make adequate arrangements for supply of electricity and there should be no discrimination in the hours of  supply between rural and urban households.

  6. For projects to be eligible for capital subsidy under the scheme, prior commitment of the States would also be obtained before sanction of projects under the scheme for :

  1.  Deployment of franchisees for the management of rural distribution in projects financed under the scheme, and 

  2.  The provision of requisite revenue subsidies to the State Utilities as required under the Electricity Act, 2003.

  1. SCOPE OF THE SCHEME

           Under the scheme, projects could be financed with capital subsidy for provision of

7.1 Rural Electricity Distribution Backbone (REDB)

7.2 Creation of Village Electrification Infrastructure (VEI)

7.3 Decentralised Distributed Generation (DDG) and Supply

Decentralised generation-cum-distribution from conventional sources for villages where grid connectivity is either not feasible or not cost effective provided it is not covered under the programme of Ministry of Non-conventional Energy Sources for providing electricity from non-conventional energy sources under their remote village electrification programme of 25000 villages.

7.4 REDB, VEI and DDG would also cater to the requirement of agriculture and other activities including

This would facilitate overall rural development, employment generation and poverty alleviation.

7.5 Rural Household Electrification of Below Poverty Line Households :

Electrification of un-electrified Below Poverty Line (BPL) households would be financed with 100% capital subsidy as per norms of Kutir Jyoti Programme in all rural habitations. Households above poverty line would be paying for their connections at prescribed connection charges and no subsidy would be available for this purpose.

The over-all subsidy of components from paras 7.1, 7.2, 7.3, 7.5 taken together should be kept within 90% of the over- all project cost. The over-all cost estimate of different components for all villages and household are at the Annexure-I.

7.6 The project covers the entire country. The details of the un-electrified villages and households access to electricity as per census 2001 is in the Annexure-II and Annexure-III.

  1. Franchisees:

In the management of rural distribution through franchisees who could be Non-Governmental Organisations (NGOs), Users Association, Cooperatives or individual entrepreneurs, the Panchayat institutions would be associated. The franchisees arrangement could be for system beyond and including feeders from substation or from and including Distribution Transformer(s).

  1. Revenue Sustainability

Based on the consumer mix and the prevailing consumer tariff and likely load, the Bulk Supply Tariff (BST) for the franchisee would be determined after ensuring commercial viability of the franchisee. Wherever feasible, bidding may be attempted for determining the BST. This Bulk Supply Tariff would be fully factored into the submissions of the State Utilities to the State Electricity Regulatory Commissions (SERCs) for their revenue requirements and tariff determination. The State Government under the Electricity Act is required to provide the requisite revenue subsidies to the State Utilities if it would like tariff for any category of consumers to be lower that the tariff determined by the SERC. While administering the scheme, prior commitments may be taken from the State Government regarding

  1. The capital subsidy for eligible projects under the scheme would be given through REC. These eligible projects shall be implemented fulfilling the conditionality indicated above. In the event the projects are not implemented satisfactorily in accordance with the conditionality indicated above, the capital subsidy could be converted into interest bearing loans.

  2. The services of Central Public Sector Undertakings (CPSUs) have been offered to the states for assisting them in the execution of Rural Electrification Projects as per their willingness and requirement. With a view to augment the implementation capacities for the programme, REC has entered into Memorandum of Understanding (MOUs) with NTPC, POWERGRID, NHPC AND DVC to make available CPSU's project management expertise and capabilities to states wishing to use their services. This is being operationalised through a suitable Tripartite Agreement. 

  3. Up to 1 per cent of the total subsidy under the scheme would be used for associated works / efforts of the programme  linked to research, technology development, capacity building, information system development, awareness and other  administrative and associated expenses and undertaking of pilot studies and projects complimentary to this rural electrification scheme.

  4. This scheme merges the existing Accelerated Electrification of one lakh Villages and one crore Households and the Minimum Needs Programme for rural electrification.

  5. The scheme will be subject to evaluation and a view on modification required for implementation during 11th Plan will be taken after a comprehensive review towards the end of 10th Plan.

  6. The expenditure involved on above scheme would be debited to the following Head under Grant No. 73 Ministry of  Power for the year 2004-05 and corresponding head of account for the subsequent years.

2801

Power (Major Head)

06.796 

Rural Electrification

3

Rural Electrification

03.00.33

Subsidies
  1. This issues with the concurrence of Finance Wing vide their diary No. 3766/2055-JS&FA dated the 18th March, 2005.



                                                                                                                                         - sd -

                                                                                                                                   (Ajay Shankar)
                                                                                                            Additional Secretary to the Government of India
                                                                                                            Tel:23715378

To,

  1. The Chief Secretaries of all States
  2. The Secretary, Power/Energy of all States
  3. Chairman of all States (Utilities)
  4. Chairman & Managing Director, REC Scope Complex, New Delhi.

Copy to:

  1. Prime Minister's Office, South Block, New Delhi.
  2. Cabinet Secretary, Cabinet Secretariat Rashtrapati Bhawan, New Delhi.
  3. Ministry of Finance, Department of Expenditure (Plan Finance), New Delhi.
  4. Chairman, Central Electricity Authority, R.K. Puram, New Delhi.
  5. Secretary, Planning Commission, New Delhi.
  6. Secretary, Ministry of Non-conventional Energy Sources, New Delhi.
  7. Secretary, Ministry of Rural Development, Krishi Bhawan, New Delhi.
  8. Secretary, Department of Panchayati Raj, New Delhi.
  9. Secretary, Ministry of Programme Implementation, New Delhi.
  10. Department of Development of North Eastern Region, New Delhi.
  11. CMDs of NHPC, NTPC, POWERGRID, DVC.
  12. PPS to Secretary (P)/PS to SS (P)/ AS(GC)
  13. All JSs / All Directors / DS in the Ministry of Power.


                                                                                                Annexure-I 

SCHEME ON RURAL ELECTRICITY INFRASTRUCTURE AND VILLAGE ELECTRIFICATION

COST ESTIMATES OF THE SCHEME


                                                                                                                                                         Rs. In Crore 

1. Electrification of 125,000 un-electrified villages which includes interalia development of backbone network comprising Rural Electricity Distribution Backbone (REDB) and Village Electrification Infrastructure (VEI) and last mile service connectivity to 10% Households in the village @ Rs. 6.50 lakh/village  8,125 
2 Rural Households Electrification (RHE) of population under BPL i.e. 30% of 7.8 crore. Un-electrified Households/ i.e. 2.34 crore households @ Rs.1500/H/H as per Kutir Jyoti dispensation  3,510
3 Augmentation of backbone network in already electrified villages having un-electrified inhabitations @ Rs./1 lakh/ village for 4.62 lakh villages  4,620
Total (1 + 2 + 3)   16,255 
Outlay for the scheme 16,000
 Subsidy component @ 90% for items 1 & 3 and 100% for item 2  14,750
Component of subsidy to be set aside for enabling activities including technology development @ 1% of outlay 160

 

 Annexure -II

Status of Village Electrification as on 31.3.2004

 
Sl. No. State  Total No. of inhabited villages as per 1991 census  Total No. of villages electrified  Balance un- electrified villages  % age of electrified villages
1. Andhra Pradesh 26586  26565    100 
2. Arunachal Pradesh 3649  2335  1314  64 
3. Assam  24685  19081  5604   77.30
4. Bihar  38475  19251  19224  50 
5. Jharkhand  29336  7641  21695  26 
6. Goa  360  360  - 100 
7. Gujarat  18028  17940  $ 100 
8. Haryana  6759  6759  - 100 
9. Himachal Pradesh 16997  16891  106  99.38
10.  J&K 6477  6301  176  97.28 
11. Karnataka  27066  26771  295  98.91
12. Kerala  1384  1384  - 100 
13. Madhya Pradesh 51806  50474  1332  97.43
14. Chattisgarh  19720  18532  1188  94 
15. Maharashtra  40412  40351  - 100 
16. Manipur  2182  2043  139  93.63
17. Meghalaya  5484  3016  2468  55 
18. Mizoram  698  691  7  99 
19. Nagaland  1216  1216  - 100 
20. Orissa  46989  37663  9326  80.15
21. Punjab  12428  12428  - 100 
22. Rajasthan  37889  37276  613  98.38 
23. Sikkim  447  405  42  90.60
24. Tamil Nadu 15822  15822  - 100 
25. Tripura  855  818  37  95.67
26. Uttar Pradesh 97122  57042  40080  58.73
27. Uttaranchal  15681  13131  2550   83.73
28. West Bengal 37910  31705  6205  83.63
  Total (States) 586463  47382  11241  80.80 
  Total UTs 1093  1090  $ 100% 
  All India 587556  474982  112401  80.80% 

                  * Balance villages are not feasible for electrification. 
                  * As per the new definition of village electrification (effective from 2004-05) 
                     total number of unelectrified villages is estimated to be around 1,25,000.

 

Annexure-III

RURAL HOUSEHOLDS ELECTRIFICATION - 2001 CENSUS

S.No.  S T A T E TOTAL NO. OF RURAL HOUSEHOLDS HOUSEHOLDS HAVING ELECTRICITY   % electrified House-holds % un-electrified Households 
1 Andhra Pradesh 12,676,218 7,561,733 59.65 40.35
2 Arunachal Pradesh 164,501 73,250 44.53 55.47
3 Assam  4,220,173 697,842 16.54 83.46
4 Bihar  12,660,007   649,503 5.13 94.87
5 Chhattisgarh  3,359,078 1,548,926  46.11 53.89
6 Delhi  169,528  144,948 85.50 14.50
7 Goa  140,755 130,105 92.43 7.57
8 Gujarat  5,885,961 4,244,758 72.12 27.88
9 Haryana  2,454,463 1,926,814 78.50 21.50
10 Himachal Pradesh 1,097,520 1,036,969 94.48 5.52
11 Jammu & Kashmir  1,161,357 868,341 74.77 25.23
12 Jharkhand  3,802,412 379,987 9.99 90.01 
13 Karnataka  6,675,173 4,816,913 72.16 27.84
14 Kerala  4,942,550 3,238,899 65.53 34.47
15 Madhya Pradesh 8,124,795 5,063,424 62.32 37.68
16 Maharashtra  10,993,623 7,164,057 65.17 34.83
17 Manipur  296,354 155,679 52.53 47.47
18 Meghalaya  329,678  99,762 30.26 69.74
19 Mizoram  79,362 35,028 44.14 55.86
20 Nagaland  265,334 150,929 56.88 43.12
21 Orissa  6,782,879 1,312,744 19.35 80.65
22 Punjab  2,775,462 2,482,925 89.46 10.54
23 Rajasthan  7,156,703 3,150,556 44.02 55.98 
24 Sikkim  91,723  68,808 75.02 24.98
25 Tamil Nadu 8,274,790 5,890,371 71.18 28.82
26 Tripura  539,680  171,357 31.75 68.25
27 Uttar Pradesh 20,590,074 4,084,288 19.84 80.16
28 Uttaranchal  1,196,157 602,255 50.35  49.65
29 West Bengal 11,161,870 2,262,517  20.27 79.73
Union Territories          
1 A.& Nicobar Islands 49,653  33,807 68.09 31.91
2 Chandigarh  21,302 20,750 97.41 2.59
3 D.& Nagar Haveli 32,783 27,088 82.63 17.37
4 Daman & Diu  22,091 21,529 97.46 2.54
5 Lakshadeep  5,351 5,337 99.74 0.26
6 Pondicerry  72,199 58,486  81.01 18.99
  ALL INDIA 138,271,559 60,180,685 43.52 56.48