Skip to main content

PM Switches on Rs 16kcr Scheme to Light Up Bharat

PM Switches on Rs 16kcr Scheme to Light Up Bharat
Aim is to offer power to all households by Dec 2018, and free connections to poor

Prime Minister Narendra Modi has launched a Rs 16,320-crore scheme to supply ` electricity to all households by December 2018, providing free connections to the poor and at very low cost to others.

The Pradhan Mantri Sahaj Bijli Har Ghar Yojna, named `Saubhagya', which will be executed just before the next general elections, aims to improve the environment, public health, education and connectivity with the help of last-mile power connections across India. It will help reduce the use of kerosene lamps in non-electrified households.

Modi said the scheme would bring ā€œmonumental changeā€œ in the life of the poor, and this was possible after three years of reforms in the power sector.ā€œIn the working of this government, all you can see is Garib Kalyan (welfare of the poor). The aspirations of the poor determine the working of our government,ā€œ the PM said.

After connecting each house with electricity, the government's next target would be to end load shedding and provide 24x7 power, said RK Singh, minister for power and renewable energy. Officials said the sche Rs 16,000 crore inme would inject ` to the economy, create assets and generate employment. Importantly, electricity would be billed without any subsidy.

Singh said states that complete the scheme by December next year would be given an additional 15% grant by the Centre as incentive. The scheme is being funded to the extent of 60% by central grants, 30% by bank loans and 10% by states. The scheme will boost growth, said Kameswara Rao, PwC's specialist for energy , utilities and mining. ā€œThis is a natural transition of government policy from electrification of villages to connecting households. Access to energy is central to development and this initiative to expedite that access is strongly positive for growth.ā€œ He said last-mile connectivity has always been a huge challenge due high cost of connections for households and higher supply costs for states. ā€œSo this attempt to address both, by funding energy efficient equipment, is a positive step.ā€œ

Remote hamlets will be powered with solar panels along with five LED lamps, a DC fan, and a plug point along with repair and maintenance for five years, the government said. Under the Saubhagya scheme, electricity connections will be given free to people identified by the Socio Economic and Caste Census of 2011 while others will get it for Rs 500, payable in 10 instalments in the bill, a government statement said. The scheme promises on-the-spot registration of applications, which should include an identity proof.

The scheme primarily benefits rural areas, which have the vast majority of households without power connections. Of the total outlay of Rs16,320 crore, rural areas will get  Rs 14,025 crore. The government said Rural Electrification Corp will be the nodal agency for the scheme throughout the co untry while public institutions and panchayats will be authorised to collect applications forms, distribute bills and collect payments in consultation with panchayati raj institutions and urban local bodies.

The scheme follows the government's mission to take electricity lines to each and every village in the country , including solar power stations in remote hamlets, which was rigorously implemented by coal and railways minister Piyush Goyal, who was earlier the minister for power, renewable energy , coal and mines.

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.

The Economic Times, New Delhi, 26th September 2017

Comments

Popular posts from this blog

Budget: Startup sector gets new Fund of Funds, FM to allocate Rs 10K cr

  The Indian startup sector received a boost with Finance Minister Nirmala Sitharaman announcing the establishment of a new fund of funds (FoF) in the Budget 2025. The minister unveiled a fresh FoF with an expanded scope, allocating Rs 10,000 crore. The initial fund of funds announced by the government with an investment of Rs 10,000 crore successfully catalysed commitments worth Rs 91,000 crore, the minister said.   ā€œThe renewal of the Rs 10,000 crore commitment to the Fund of Funds for alternative investment funds (AIFs) is a significant step forward for the Indian startup and investment ecosystem. The initial Rs 10,000 crore commitment catalysed Rs 91,000 crore in investments, and I fully expect this fresh infusion to attract an additional Rs 1 lakh to Rs 1.5 lakh crore in capital,ā€ said Anirudh Damani, managing partner, Artha Venture Funds.   Damani further added that this initiative will provide much-needed growth capital to early-stage startups, further strengthenin...

GST collection for November rises by 8.5% to Rs.1.82 trillion

  New Delhi: Driven by festive demand, the Goods and Services Tax (GST) collections for the Union and state governments climbed to Rs.1.82 trillion in November, marking an 8.5% year-on-year growth, according to official data released on Sunday. Sequentially, however, the latest collection figures are lower than the Rs.1.87 trillion reported in October, which was the second highest reported so far since the new indirect tax regime was introduced in 2017. The highest-ever GST collection of Rs.2.1 trillion was reported in April. The consumption tax figures highlight the positive impact of the recent festive season on goods purchases, providing a much-needed boost the industry had been anticipating. The uptick in GST collections driven by festive demand had been anticipated by policymakers, who remain optimistic about sustained growth in rural consumption and an improvement in urban demand. The Ministry of Finance, in its latest monthly economic review released last week, stated that I...