SCOPE OF THE SCHEME

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

1. Rural Electricity Distribution Backbone (REDB)
   
   Provision of 33/11 KV (or 66/11 KV) sub-stations of adequate capacity and lines in blocks where these do not exist.
   
   

2. Creation of Village Electrification Infrastructure (VEI)
   
   i)  Electrification of un-electrified villages.
   
   ii) Electrification of un-electrified habitations with a population of above 100.
   
   iii) Provision of distribution transformers of appropriate capacity in electrified villages / habitation(s).
   
   

3. Decentralized Distributed Generation (DDG) and Supply
   
   Decentralized distribution-cum-generation from conventional or renewable or non-conventional sources such as biomass, bio fuel, bio gas, mini hydro, geo thermal and solar etc. for villages where grid connectivity is either not feasible or not cost effective. The funding will be on the pattern of 90% subsidy from Government of India and 10% loan from REC or from own funds of the state/loan from financial institutions. The Monitoring Committee on RGGVY, while sanctioning DDG projects under RGGVY, shall coordinate with MNRE to avoid any overlap. The provision for subsidy requirement for DDG is Rs.540 crore.
   
   

4. REDB, VEI and DDG would indirectly facilitate power requirement of agriculture and other activities including irrigation pump sets, small and medium industries, khadi and village industries, cold chains, healthcare, education and IT etc. This would facilitate overall rural development, employment generation and poverty alleviation.
   
   

5. Rural Household Electrification of Below Poverty Line Households:
   
   i) BPL households will be provided free electricity connections. The rate of reimbursement for providing free connections to BPL households would be Rs.2200 per household.
   
   ii) Households above poverty line are to pay for their connections at prescribed connection charges and no subsidy would be available for this purpose.
   
   iii) Wherever SC/ST population exists amongst BPL households and subject to being eligible otherwise, they will be provided connection free of cost and a separate record will be kept for such connection.
   
   

6. The over-all subsidy of components from Paras 1, 2, 3 and 5 (above) taken together should be kept within 90% of the over-all project cost.