CONTINUATION OF RGGVY IN THE XI PLAN
Continuation of "Rajiv Gandhi Grameen Vidyutikaran Yojana – Scheme of Rural Electricity Infrastructure and Rural Household Electrification", has been sanctioned in the XI-Plan for attaining the goal of providing access to electricity to all households, electrification of about 1.15 lakh un-electrified villages and electricity connections to 2.34 crore BPL households by 2009. The approval has been accorded for capital subsidy of Rs.28000 crore during the Eleventh Plan period, at this stage.
Rural Electrification Corporation (REC) is the nodal agency for the scheme.
Ninety per cent capital subsidy is provided towards overall cost of the projects under the scheme, excluding the amount of state or local taxes, which will be borne by the concerned State/State Utility. 10% of the project cost to be contributed by states through own resources/loan from financial institutions.
The states will finalize their Rural Electrification Plans in consultation with Ministry of Power and notify the same within six months. Rural Electrification Plan will be a roadmap for generation, transmission, sub-transmission and distribution of electricity in the state which will ensure the achievement of objectives of the scheme.
For projects to be eligible for capital subsidy under the scheme, prior commitment of the States be obtained before sanction of projects under the scheme for:
Guarantee by State Government for a minimum daily supply of 6-8 hours of electricity in the RGGVY network with the assurance of meeting any deficit in this context by supplying electricity at subsidized tariff as required under the Electricity Act, 2003.
Deployment of franchisees for the management of rural distribution in projects financed under the scheme and to undertake steps necessary to operationalize the scheme.