Rural Electrification Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY)

1. Rural ElectrificationRajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY) 29.10.2010 Hyderabad

2. Rural Electrification – Indian Perpsective A vital programme for socio-economic development of rural areas To ensure rapid economic development by providing electricity as an input for productive uses in agriculture, rural industries, etc. To improve the quality of life of the rural people by supplying electricity for lighting of rural homes and hearths, shops, community centres, public places etc. 2

3. Genesis of India’s RE Programme • Evolution of India’s rural electrification programme can be divided into five distinctive stages. • Stage I • 1951-planned electrification of villages taken up with the main objective of providing electricity as a social amenity- • More than 45,000 villages covered. • Stage II • Mid Sixties- focus on the role of electricity as development input with a primary objective of energizing pump sets- • More than 2 lakh villages and more than one crore pump sets energised

4. Genesis of India’s RE Programme • Stage III • Decade of Eighties- RE seen as a tool for correcting regional inequalities • More than 2.20 lakh villages electrified, around 43 lakh pump sets energised • Stage IV • Decade of Nineties – Deteriorating financial conditions of SEBs break the tempo. • Emphasis on improving system efficiencies rather than extensive coverage • Only 41,000 villages electrified

5. Genesis of India’s RE Programme • Stage V • 2001 onward- • Household electrification rather than village electrification is the new focus of RE programme

6. Major RE Programmes • Minimum Needs Programme • Started in Vth Plan • Targetted states with village electrification lower than national average • 100% loans for last mile connectivity • Discontinued in 2004-05 because of lack of response from States

7. Major RE Programmes • Kutir Jyoti Programme • Initiated in 1988-89 • Single point connection to BPL households • 100% grant • Rs. 612 crore released • 71.7 lakh BPL household connected in 16 years • Merged with AREP in 2004 and now with RGGVY

8. Major RE Programmes • Pradhan Mantri Gramodaya Yojana (PMGY) • Launched in 2000-2001 • Funding provided for minimum services in rural areas (health, education, drinking water and electrification etc) • Funding as additional central assistance on 90% loan and 10% grant principle • Flexibility to states to decide on inter-allocation amongst basic services • Discontinued from 2005

9. Major RE Programmes • Accelerated Rural Electrification Programme (AREP) • Launched in 2002 • Interest subsidy of 4% • Applicable on loans given through PFC/REC and NABARD

10. Major RE Programmes • Accelerated Electrification of one lakh villages and one crore households • Launched in 2004 • 40% capital subsidy and 60% loan • AREP and Kutir Jyoti schemes merged with the programme

11. Trend in Village Electrification

12. Status of Village Electrification(As per 2001 Census)

13. Status of Rural Household Electrification (2001 census)

14. Characteristics of RE Programme • Utilities view point • High cost per unit • Difficult recovery of cost of operations • Sub-optimal and risky investment • Involves large capital and revenue subsidy • Sustainability

15. Characteristics of RE Programme Users view point • Accessibility • Availability • Reliability • Affordability • Quality

16. Accessibility States with more the 10% villages to be electrified • Barring these eight States, others have electrified more than 90% of their villages • Has this apparent success led to access of electricity by the rural households ?

17. Availability States with > 25% households to be electrified

18. Changing Definitions of village Electrification • Prior to October 1997 • village was classified as electrified if electricity is being used within its revenue area for any purpose whatsoever. • In 1997, the definition was modified to provide for the use of electricity to village habitations. • a village will be deemed to be electrified if the electricity is used in the inhabited locality within the revenue boundary of the village, for any purpose whatsoever.

19. Changing Definitions of village Electrification • February 2004 • a village would be declared electrified if: • Basic infrastructure such as distribution transformer and distribution lines are provided in the inhabited locality as well as the dalit basti/hamlet where is exists. (For electrification through non-conventional sources a distribution transformer may not be necessary) • Electricity is provided to public places like schools, panchayat offices, health centres, dispensaries, community centres etc, and • The number of households electrified should be at least 10% of te total number of households in the village.

20. Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY) Aims at… Electrifying all villages and habitations. Providing access to electricity to all rural households. Giving Electricity Connection to Below Poverty Line (BPL) families free of charge. Main Features All ongoing schemes merged in “Rajiv Gandhi Grameen Vidyutikaran Yojana” (RGGVY) 90% grant and 10% loan Electrification as per new definition Franchisee arrangement for revenue sustainability

21. Through creation of : Rural Electricity Distribution Backbone (REDB) with 33/11 KV (or 66/11 KV) sub-station of adequate capacity in blocks where these do not exist. Village Electrification Infrastructure (VEI) with provision of distribution transformer of appropriate capacity in villages/habitations. Decentralised Distributed Generation (DDG) Systems based on conventional & non conventional energy sources where grid supply is not feasible or cost-effective. Rajiv Gandhi GrameenVidyutikaranYojana (RGGVY)

22. Rajiv Gandhi GrameenVidyutikaranYojana (RGGVY) RGGVY – Implementation Framework • For effective and expeditious implementation, REC has prepared- • Guidelines for project formulation • Guidelines for procurement • Tripartite / Quadripartite agreements • MOUs with CPSUs for providing services to states • Specifications of equipment / material • Construction standards • Franchisee guidelines • 3rd party quality monitoring guidelines

23. Rajiv Gandhi GrameenVidyutikaranYojana (RGGVY) Role of REC….. Nodal Agency • Project scrutiny and Appraisal • Preparation of specification for equipment & material and Construction standard for erection • Co-ordination with MOP, Implementing agencies/ State Govts. • Release of funds to implementing agencies • Monitoring of projects • Ensuring appointment of the franchisee by SPUs.

24. Rajiv Gandhi Grameen Vidhyutikaran Yojana (RGGVY) • Role of MOP • Policy framework • Sanction of projects through Monitoring Committee • Release of Capital Subsidy • Monitoring of programme

25. Rajiv Gandhi Grameen Vidhyutikaran Yojana (RGGVY) • Role of CPSUs State may opt services of CPSUs for- • Project Formulation • System planning • Design engineering • Procurement of goods and services • Construction/implementation/ Commission • Project monitoring and supervision of quality of work.

26. Rajiv Gandhi Grameen Vidhyutikaran Yojana (RGGVY) • Role of State Govts./state power utility • Appointment of independent agency for monitoring and supervision of quality of works • Deployment of franchisees for the management of rural distribution • Determination of Bulk Supply Tariff to ensure commercial viability of franchisees • Provision of requisite revenue subsidy to the state utilities, as required under Electricity Act, 2003. • Adequate arrangement for supply of electricity • Providing authenticated BPL List

27. Role of Monitoring Committee Ministry of Power has constituted monitoring committee under the Chairmanship of Secretary (Power) with representatives from Planning Commission, Dept. of Expenditure, MNRE, Ministry of Rural Development and Ministry of Panchayti Raj Monitoring Committee review and monitor the implementation of scheme including sanction of projects, revised cost estimates and issue necessary guidelines from time to time for effective implementation of the scheme. Rajiv Gandhi Grameen Vidhyutikaran Yojana (RGGVY)

28. Rajiv Gandhi GrameenVidhyutikaranYojana (RGGVY) Project Outlay and Coverage (All India) As on 15.10.2010

29. Rajiv Gandhi GrameenVidhyutikaranYojana (RGGVY) Project Outlay and Coverage (Southern Region) As on 15.10.2010 * Revised Coverage in Karnataka

30. Project Outlay and Coverage (Southern Region – State wise)

31. Rajiv Gandhi GrameenVidhyutikaranYojana (RGGVY) Physical Achievement so far – As on 15.10.2010 (All India) 31

32. Rajiv Gandhi GrameenVidhyutikaranYojana (RGGVY) Physical Achievement so far – As on 15.10.2010 (Southern Region) *Revised Coverage in Karnataka 32

33. Physical Achievement so far - As on 15.10.2010 (Southern Region – State wise)

34. Thank You

35. BACK UP SLIDES

36. X Plan Projects (Andhra Pradesh)

37. X Plan Projects (Andhra Pradesh)

38. XI Plan Projects (Andhra Pradesh)

39. X Plan Projects (Karnataka) *Revised Coverage

40. XI Plan Projects (Karnataka) *Revised Coverage

41. X Plan Projects (Kerala)

42. XI Plan Projects (Kerala)

43. XI Plan Projects (Tamil Nadu)

44. XI Plan Projects (Tamil Nadu)

45. Project Wise Coverage and Achievement

46. Project Wise Coverage and Achievement

47. Project Wise Coverage and Achievement

48. Project Wise Coverage and Achievement

49. Project Wise Coverage and Achievement

50. Project Wise Coverage and Achievement