PM to launch Gram Jyoti Yojana from poll-bound Bihar

Prime Minister Narendra Modi will launch Rs 5,000 crore Deendayal Upadhyaya Gram Jyoti Yojana (DUGJY) from Patna on Saturday this week.

"Around 40 districts from Bihar have committed to be part of DUGJY and the scheme would kick start from Bihar benefitting millions by lighting their life," said Piyush Goyal, minister of state for coal, power and renewable energy.

Bihar is poll bound for assembly elections next year.

The state suffers from massive power crunch with peak deficit around 2.8 to 3.5%. DUGJY was announced in the maiden budget of the NDA government last year.

It aims at strengthening power supply to rural areas and agricultural populace. The scheme provides for feeder segregation for agricultural and domestic demand in rural areas. This same scheme helped get 24X7 power supply in Gujarat by cutting down on discom losses.

Goyal also said that the central government has finished dialogue with all states to be part of the flagship schemes - DUGJY and Integrated power development scheme (IPDS) - strengthening of last mile power supply in urban areas and 100% metering.

"Around 7-8 states have expressed intention to be part of strengthening of their power supply systems. We had a healthy discussion with them and we are hoping work will commence in many states soon," said Goyal.

The minister though rejected the idea of any financial restructuring package for the ailing state power distribution companies.

"Giving financial incentives is not the solution. We have conveyed to the states that we will provide all possible assistance to improve their power supply and expertise to reduce their losses," said Goyal.

Discoms across the country have cumulative loss of Rs 70,000 crore. Due to subdued demand, power supply of close to 3 billion units remained unsold during last financial year.

While the UPA government introduced a financial restructuring plan for the discoms, the Modi led NDA government has scrapped off any financial bail out package in its last union budget for the power sector. Almost all states had defaulted on the earlier FRP scheme.