Electrification of Villages and Hamlets

The Government is implementing Decentralised Distributed Generation (DDG) under Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY) for electrification of villages where grid connectivity is either not feasible or not cost effective. This was stated by Sh. Piyush Goyal, Minister of state for Power, Coal & New and Renewable Energy (Independent Charge) in a written reply to a question in the Rajya Sabha. In XII Plan period, DDG has also been extended to the grid connected area where supply of electricity is less than 6 hours a day. Decentralized Distributed Generation (DDG) can be from conventional or renewable sources such as Biomass, Biofuels, Biogas, Mini hydro, Solar etc. Rs.900 crore as subsidy has been earmarked for DDG projects. However, the allocation under DDG would be flexible to meet any additional requirements within the overall cost of the scheme. DDG scheme provides a subsidy towards 90% of the project cost. The balance 10% is to be arranged by the Implementing Agency at their own or arrange from any FI/REC.

The Minister further stated that Ministry of New & Renewable Energy has been implementing Remote Village Electrification (RVE) Programme for providing financial support for lighting/basic electrification in those remote unelectrified census villages and unelectrified hamlets of electrified census villages where grid extension is not found feasible by the State Governments and hence are not covered under the Rajiv Gandhi Gramin Vidyutikaran Yojana (RGGVY). Such villages are provided basic facilities for lighting/electricity through various renewable energy sources. Under the Programme, Central Financial Assistance of up to 90% of the costs of systems, subject to pre specified maximum amount, is provided for approved projects to the states. The balance cost of projects is financed through contribution from State Plans, beneficiaries, or other sources.

The Minister further stated that during the last 5 years, REC has sanctioned 775 DDG projects for a total project cost of Rs.349.38 crore in the states of Andhra Pradesh, Bihar, Chhattisgarh, Madhya Pradesh, Rajasthan, Jharkhand, Uttarakhand, Uttar Pradesh, Kerala and Odisha. Out of these 775 projects, 164 projects have already been commissioned and remaining are at the various stages of Tendering & Execution. REC has so far disbursed an amount of Rs.43.68 crore for the implementation of the DDG projects. The RVE scheme is based on proposal submitted by states for coverage of left out villages/hamlets from the RGGVY Scheme of Ministry of Power; therefore, target is not relevant. During the last five years, 3704 number of villages and hamlets have been sanctioned and around 259.60 Crore fund has been released to various states under the programme, the Minister added.