Saubhagya Scheme for Household Electrification (Important) (Download PDF)

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With PM Modi promising free electricity for 4 crore rural households under Sahaj Bijli Har Ghar Yojna or ‘Saubhagya’ scheme. 16,320-crore scheme to supply electricity to all households by December 2018.

Map of Saubhagya Scheme for Household Electrification
  • The scheme will provide last-mile power connections across India.
  • The scheme provides free connections to the poor and at very low cost to others.

Details of the Saubhagya Scheme

  • Scheme takes care of last-mile connectivity (with central assistance) - a huge challenge due high cost of connections for households and higher supply costs for states
  • The scheme promises on-the-spot registration of applications, which should include an identity proof.
  • Electricity connections to be given free to people identified by the Socio Economic and Caste Census of 2011.
  • Others beneficiaries will get it for ₹ 500, payable in 10 instalments in the bill, a government statement said.
  • Remote hamlets will be powered with solar panel- five LED lamps, a DC fan, and a plug point covering repair and maintenance for five years.

Timelines and Future Plans

  • The scheme was made possible only after three years of reforms in the power sector.
  • This is a natural transition of government policy from electrification of villages to connecting households.
  • After connecting each house with electricity, the government՚s next target would be to end load shedding and provide 24 × 7 power.
  • The next step would be to fund energy efficient equipment
  • Scheme would inject ₹ 16,000 crore into the economy, create assets, and generate employment. Electricity would be billed without any subsidy- subsidy would be provided directly to bank accounts through Aadhar enabled DBT.

Ensuring Timeliness of the Project

  • States completing the scheme by December next year are to be given an additional 15 % grant by the Centre.
  • 60 % of the scheme is being funded by center, 30 % by bank loans, and 10 % by states.

Advantages of the Scheme

  • The scheme will boost growth.
  • Reduce the use of kerosene lamps in non-electrified households
  • It will be executed just before the next general elections to improve the environment, public health, education, and connectivity
  • Mainly benefits rural areas with majority of households without power connections- Of the total outlay of ₹ 16,320 crore, rural areas will get ₹ 14,025 crore.
  • About 90 % of the non-electrified households are in Bihar, Uttar Pradesh, Maharashtra, Madhya Pradesh, Odisha, Jharkhand, Rajasthan, Karnataka, J & K, and North-Eastern States- who will benefit most.

Administrative Details

  • Rural Electrification Corp is the nodal agency for the scheme
  • Public institutions and panchayats authorized to collect applications forms, distribute bills and collect payments in consultation with Panchayati raj institutions and urban local bodies.

- Published/Last Modified on: October 21, 2017

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