Rural electrification programme revamped for faster rollout

Rajiv Gandhi Grameen Vidyutikaran Yojana targets free power connections to all rural households, especially to BPL families

The Power Ministry has reworked its ambitious rural electrification programme to speed up the process of providing power to villages.

"There will now be a change in the model of execution of the Rajiv Gandhi Grameen Vidyutikaran Yojana and also in the auditing process of this rural electrification scheme," Power Minister Jyotiraditya M Scindia told reporters here.

The move is aimed at quickening the process of providing electricity to villages after delays due to lengthy procedures in the earlier model.

The revamp includes web-based monitoring of progress of projects, release of funds linked to achievement of pre-determined milestones and electronic transfer of funds right up to the contractor level, among others.

"For the 12th Plan, where Rs 35,000 crore has been approved, one of the conditionalities is that a committee will be set up at Chief Secretary level in each state that would finalise the DPR (detailed project report)," Scindia said.

RGGVY targets free power connections to all rural households, especially to Below Poverty Line (BPL) families. There are cases where names of families are missing from the list of those entitled to get free electricity access.

The minister said some of the previous projects under RGGVY will be reworked and implemented in accordance with the new execution and audit mechanism.

"Out of 413 projects of 11th plan (2007-12), 145 projects are close to completion and will be done on old audit and execution system, 196 will be done in new audit system and 72 new projects in new audit and new execution," he said.

The scheme was formulated in April 2005 under which 648 projects have been sanctioned to provide power supply to 1.13 lakh villages and improve supply to 3.83 lakh partially covered villages. Free connections to 2.77 crore households, including in backward regions, were envisaged in the scheme.

State governments, which are implementing the project, get a 90% grant from the central government and the remaining 10% as a loan from REC (Rural Electrification Corp), the nodal agency for the programme.

As per the latest data (July 31, 2013), electrification works in 1.07 lakh villages and almost 3 lakh partially covered ones have been completed and free connections have been provided to 2.11 crore BPL households.

The minister highlighted various achievements of his ministry and challenges for the sector. He said the ministry is considering solutions to tackle the gas shortage faced by power plants.

"We are hoping that any gas after its quota to the fertiliser sector should come to the power sector. We may even look at pooling prices of imported and domestic natural gas if needed," Scindia said.

He added that the recent duty exemption for importers of natural gas will go a long way in solving the fuel shortage problem.