National Training Programme For C&D Employees (Variant 3-Financial Management ,Store Accounting and Office Admininstration) )

Chapter-2 RGGVY Scheme

Rajiv Gandhi Gramin Vidyutikaran Yojana (RGGVY) Rajiv Gandhi Grameen Vidyutikaran Yojana - Scheme for Rural Electricity Infrastructure & Household Electrification launched by Hon’ble Prime Minister on 4th April 2005 to achieve NCMP goal: augmenting and modernizing the rural electricity infrastructure completion of rural households electrification in five years Existing schemes of Ministry of Power merged into RGGVY scheme : Accelerated Electrification of One Lakh Villages and One Crore Households Minimum needs programme(MNP)

Rajiv Gandhi Gramin Vidyutikaran Yojana (RGGVY) Ultimate Goal Bridge the urban-rural gap Provide reliable and quality supply to rural areas.

Rajiv Gandhi Gramin Vidyutikaran Yojana (RGGVY) Objectives In 5 years… Electrify all villages and habitations Provide access to electricity to all households Give electricity connection to Below Poverty Line (BPL) families free of charge

Rajiv Gandhi Gramin Vidyutikaran Yojana (RGGVY) Accelerate rural development, generate employment and eliminate poverty through… Irrigation Small scale industries Village and khadi industries Cold chains Health care Education and IT

Rajiv Gandhi Gramin Vidyutikaran Yojana (RGGVY) New Definition of Village Electrification A village would be declared electrified if : (i) Basic infrastructure such as distribution transformer and distribution lines are provided in the inhabited locality as well as the dalit basti/hamlet where it exists. (For electrification through Non-Conventional Energy Sources a distribution transformer may not be necessary). (ii) Electricity is provided to public places like schools, panchayat offices, health centers, dispensaries, community centers etc and (iii) The number of households electrified should be at least 10% of total households in the village.

Rajiv Gandhi Gramin Vidyutikaran Yojana (RGGVY) Rural Electrification-a new perspective In rural India, 24 hours supply of electricity is necessary for broad based economic and human development- going beyond increasing agricultural production through irrigation. It is an essential pre-requisite for: The second green revolution through establishment of cold chains. The dispersal of industrial activity to rural areas through small scale industries. Provision of modern healthcare facilities. Use of IT in education and other productive activities.

Rajiv Gandhi Gramin Vidyutikaran Yojana (RGGVY) Implementation Framework Preparation of District based detailed project reports for execution on turnkey basis. Involvement of central public sector undertakings of power ministry in implementation of some projects. Certification of electrified village by the concerned Gram Panchayat. Deployment of franchisee for the management of rural distribution for better consumer service and reduction in losses. Undertaking by States for supply of electricity with minimum daily supply of 6- 8 hours of electricity in the RGGVY network. contd…

Rajiv Gandhi Gramin Vidyutikaran Yojana (RGGVY) Implementation Framework Making provision of requisite revenue subsidy by the state. Determination of Bulk Supply Tariff (BST) for franchisee in a manner that ensures commercial viability. Three tier quality monitoring Mechanism for XI Plan Schemes made mandatory. Web based monitoring of progress Release of funds linked to achievement of pre-determined milestones Electronic transfer of funds right up to the contractor level Notification of Rural Electrification Plans by the state governments. contd….

Rajiv Gandhi Gramin Vidyutikaran Yojana (RGGVY) Funding Arrangement Ninety percent (90%) capital subsidy would be provided for overall cost of the projects under the scheme. States must make adequate arrangements for supply of electricity and there should be no discrimination in the hours of supply between rural and urban households.

Rajiv Gandhi Gramin Vidyutikaran Yojana (RGGVY) Scope Under the scheme, projects could be financed with capital subsidy for provision of: – Rural Electricity Distribution Backbone (REDB) ü  Provision of 33/11 KV (or 66/11 KV) sub-stations of adequate capacity and lines in blocks where these do not exist. Creation of Village Electrification Infrastructure (VEI) ü    Electrification of un-electrified villages. ü    Electrification of un-electrified habitations. ü   Provision of distribution transformers of appropriate capacity in electrified villages / habitation(s).

Rajiv Gandhi Gramin Vidyutikaran Yojana (RGGVY) Scope Decentralised Distributed Generation (DDG) and Supply ü Decentralized generation-cum-distribution from conventional sources for villages where grid connectivity is either not feasible or not cost effective ü 25,000 remote villages covered for financing under MNES not included

Rajiv Gandhi Gramin Vidyutikaran Yojana (RGGVY) Scope Rural Household Electrification of Below Poverty Line Households: ü Electrification of un-electrified Below Poverty Line (BPL) households would be financed with 100% capital subsidy as per norms of Kutir Jyoti Programme in all rural habitations. ü Households above poverty line would be paying for their connections at prescribed connection charges and no subsidy would be available for this purpose. The scheme covers the entire country

Rajiv Gandhi Gramin Vidyutikaran Yojana (RGGVY) Franchisees In the management of rural distribution through franchisees who may be Non-Governmental Organisations (NGOs), Users Association, Cooperatives or individual entrepreneurs. The Panchayat institutions would be associated. The franchisees arrangement may be for system beyond and including feeders from substation or from and including Distribution Transformer(s).

Rajiv Gandhi Gramin Vidyutikaran Yojana (RGGVY) Revenue Sustainability Based on the consumer mix and the prevailing consumer tariff and likely load, the Bulk Supply Tariff (BST) for the franchisee would be determined after ensuring commercial viability of the franchisee. This Bulk Supply Tariff would be fully factored into the submissions of the State Utilities to the State Electricity Regulatory Commissions (SERCs) for their revenue requirements and tariff determination. The State Government under the Electricity Act is required to provide the requisite revenue subsidies to the State Utilities if it would like tariff for any category of consumers to be lower that the tariff determined by the SERC.

Rajiv Gandhi Gramin Vidyutikaran Yojana (RGGVY) Release Of Capital Subsidy The capital subsidy for eligible projects under the scheme would be given through REC and projects shall be implemented fulfilling the conditionality In the event projects are not implemented satisfactorily in accordance with the conditionalities indicated above, the capital subsidy could be converted into interest bearing loans.

Rajiv Gandhi Gramin Vidyutikaran Yojana (RGGVY) (MIS as on 31/03/13)* Projects under RGGVY i. Projects sanctioned 546 Districts 576 projects ii. Unelectrified /deelectrified villages covered-110886 iii Partially electrified villages covered-342831 iv BPL HH covered 22939511 www.powermin.in/bharatnirman/MIS of RGGVY Cont….

Rajiv Gandhi Gramin Vidyutikaran Yojana (RGGVY) (MIS as on 31/03/13)* i. Sanctioned cost Rs. 26555.29crore ii Revised cost Rs.34365.90 crore iii. Funds released Rs. 29392.14 crore. iv. Un-electrified villages covered 110886 v. UE electrified 107083(97%) vi. Electrified villages covered 342831 vii. Electrification completed 290137(85.8%) www.powermin.in/bharatnirman/MIS of RGGVY Cont…

Rajiv Gandhi Gramin Vidyutikaran Yojana (RGGVY) (MIS as on 31/03/13)* BPL HH covered 2,29,39,511 BPL HH electrified 2,07,21,824(90%) Panchayat certificates received 101349(approx) X. Formation of District committees 27 states Xi. Franchisee system in place 16 states, under process 12 states. www.powermin.in/bharatnirman/MIS of RGGVY

Rajiv Gandhi Gramin Vidyutikaran Yojana (RGGVY) MIS of concerned state to be given

Rajiv Gandhi Gramin Vidyutikaran Yojana (RGGVY) Scope Of Work Under the scheme, projects could be financed with capital subsidy for; Rural Electricity Distribution Backbone (REDB) Provision of 33/11 KV (or 66/11 KV) sub-stations of adequate capacity and lines in blocks where these do not exist Provision of capacity augmentation of existing 33/11 KV (or 66/11 KV) sub-stations on furnishing suitable justification Creation of Village Electrification Infrastructure (VEI) ü    Electrification of un-electrified habitations. ü   Provision of distribution transformers of appropriate capacity in electrified villages / habitation(s) 11 KV feeders, main and spur lines Cont….

Rajiv Gandhi Gramin Vidyutikaran Yojana (RGGVY) Scope Of Work L.T. feeders and lines including augmentation of heavily loaded LT feeders, as required Circuit breakers, Isolators etc. for existing 11KV feeders   Service connections to BPL Households Meters at - 11 KV feeders and distribution transformers on LT side Metering for all consumer connections Cont…

Rajiv Gandhi Gramin Vidyutikaran Yojana (RGGVY) Cost Estimates Detailed Cost Estimates The basis should be the latest available cost data obtained on competitive bids

Thank You