Govt to continue RGGVY programme for rural electrification

CCEA has approved continuation of RGGVY in the current Plan period

The government has decided to continue the Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY), aimed at providing electricity to all rural households.

The Cabinet Committee on Economic Affairs (CCEA) has approved the continuation of RGGVY in the current Plan period, according to an official release issued today.

Capital subsidy of Rs 35,447 crore would be needed to continue the programme, including Rs 12,849 crore towards spillover works.

Of this amount, Rs 23,397 crore would be met through Gross Budgetary Support for the 12th Plan period (2012-17) and the remaining Rs 12,050 crore would spill over to the 13th Plan.

Besides completing project works from previous Plan periods, the programme will cover all remaining census villages and habitations with a population of above 100.

The programme seeks to provide "free electricity connections to BPL (Below Poverty Line) households at the rate of Rs 3,000 per connection in villages and habitations with population of above 100," the release said.

RGGVY was launched in April 2005 with the objective of providing electricity to all rural households.

"The scheme was initially approved with capital subsidy of Rs 5,000 crore for the last two years of the 10th Plan period ending March 2007. RGGVY continued in 11th Plan with capital subsidy of Rs 28,000 crore. During 2011-12, the Planning Commission approved additional capital subsidy of Rs 6,000 crore," the release said.

During the previous two Plan periods, 648 projects -- entailing a total cost of Rs 42,060.44 crore -- covering 1,12,795 un-electrified villages, 4,02,364 partially electrified villages and 275.69 lakh BPL households were sanctioned.