Questions and Answer for the Booklet to be published by PIB on Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY).

1. What is Rajiv Gandhi Grameen Vidyutikaran Yojana? Central Government launched “Rajiv Gandhi Grameen Vidyutikaran Yojana” on 4th April, 2005 for attaining the National Common Minimum Programme (NCMP) goal of providing access to electricity to all households in the country in five years. 2. What are the aims of the scheme? The scheme aims at electrification of over 1 lakh un-electrified villages and providing electricity connections to 2.34 crore rural households. The estimated cost of the scheme is approximately Rs. 51,000 crore. 3. What is the role of the Central Government in RGGVY? Under the scheme, Central Government provides 90% Capital subsidy for construction of Rural Distribution Backbone (REDB), Creation of Village Electrification Infrastructure (VEI), and Decentralised Distributed Generation (DDG). Below Poverty Line (BPL) households will be provided free electricity connections with 100% capital subsidy amounting Rs.2200/- per household in all rural habitations. APL (Above poverty line) households will obtain connections according to procedure prescribed by State utilities. 10% of the project cost will be provided by Rural Electrification Corporation (REC) as soft loan. 4. Which village or hamlet is eligible for the Scheme? A village or hamlet with population of 100 or more is eligible for the scheme. 5. Who can get free connection? All the BPL families are eligible for free connections under the scheme

Can school buildings / dispensaries / Panchayat office etc. be electrified under RGGVY? Access to electricity is being provided to these establishments under the scheme.6. In case of APL connection. applicant will have to make an application to the concerned Vidyut Karyalaya nearby state utility office. The utility should also include already electrified villages. . Who sanctions/approves application? In case of BPL connection Gram Panchayat and in case of APL connection concerned Vidyut Karyalaya nearby state utility office. 11. 8. 7. which need intensive electrification to provide access to electricity to all the rural households and to provide free connections to BPL families without electricity connection at present. It is the responsibility of state power utility to include all the un-electrified villages and hamlets (above 100 population) in the DPR. 10. 9. Who can apply? Any persons residing in the area covered by the scheme can apply. state power utility prepares the Detailed Project Report in accordance with the RGGVY Guidelines. Where to apply for electricity connection under RGGVY? In case applicant falls under BPL category. he/she will be provided a free connection under the scheme on the recommendation of Gram Panchayat. Is there a provision for those who are not eligible for free connection? Households above poverty line will pay for their connections at the State prescribed connection charges and no subsidy will be available for this purpose. How does one get his village included in the DPR? Under the scheme.

tribal. However.022 14. interested in availing the services of CPSUs may enter into MoUs with the . 13. CPSU(s) for availing their services. In lakhs) 1. Government of India has made the services of CPSUs available to the state utilities for implementing RGGVY scheme.2200/. Creation of Village Electrification Infrastructure (VEI) and Decentralised Distributed Generation (DDG). projects are financed with 90% capital subsidy by the Central Government for provision of Rural Electricity Distribution Backbone (REDB).12. States.per household in all rural habitations. Who is the implementing agency ? The state power utilities have the responsibility of implementing the work of rural electrification in their respective states. the Ministry of Power has formulated following cost norms for village electrification in various targeted areas : Cost (Rs. Electrification of unelectrified Below Poverty Line (BPL) households will be financed with 100% capital subsidy amounting to Rs. wherever required. keeping in view the huge amount of work.tribal.desert areas Cost of electricity household connection to 6 BPL 0. What is the funding pattern for the scheme ? Under the scheme. a b 2 a b 3 Electrification of unelectrified village In normal terrain In hilly.desert areas 13 18 Intensive electrification of already electrified village In normal terrain 4 In hilly. How much amount per project is sanctioned ? Based on recently awarded rural electrification projects. Households above poverty line will pay for their connections at state prescribed connection charges and no subsidy will be available for this purpose.

How is the quality of equipment / construction controlled ? The projects under the scheme are subjected to a Three Tier Quality Monitoring Mechanism. at random. Gram Panchayats do not have required expertise for implementing such projects. This inspection will cover approx. Further PIA will engage third party inspection agency. (c) Third Tier Independent Evaluators (Individuals / Agency) will be engaged by the Ministry of Power for evaluation. The inspection will cover quality checks at pre-shipment stage at the vendors’ outlet for major materials and 10% villages on random sample basis. which has been released by REC for the scheme. once the project has been completed under the RGGVY. All works rated ‘unsatisfactory’ shall be re-inspected by RQM or NQM after a rectification report has been received from the REC Quality Coordinator. of supply and erection under the programme. The details are as under : (a) First Tier Project implementing agency (PIA) would be responsible for the first tier of the Quality Control Structure. management of distribution in rural areas. whose responsibility will be to ensure that all the materials to be utilized and the workmanship conform to the prescribed specifications. they may provide their services as Franchisees for No. Can Gram Panchayat implement the project ? However. 16. The Quality Control Mechanism would be governed by the Quality Control Manual. 50% villages on random sample basis for each project. . will get the inspection done of the works/ materials.15. Recurrent adverse reports about quality of works in a given District / State might entail suspension of the Programme in that area till the underlying causes of defective work have been addressed. (b) Second Tier Rural Electrification Corporation.

2008. User Associations. 20. These franchisees will be the They may be given authorized representatives of the state power utilities. A dedicated website to RGGVY will be launched shortly. meter reading. can be Non-Governmental Organisations (NGOs). Who is eligible to become a franchisee ? They will work under the supervision of the state utility. the responsibilities of operation and maintenance of the distribution system. Self Help Group. 19. collection of bill payment etc. How many villages have been electrified so far under RGGVY? Additionally. Such Self Help Groups are already operating in Uttranchal and West Bengal.826 un-electrified villages have been electrified under RGGVY. Where can one get information regarding RGGVY scheme and progress of works? On the website of Ministry of Power i.3. attending of minor faults. which will have the over all A franchisee. The Self Help Groups of women may also become franchisees. 40.in. 21.http://powermin. What is a franchisee ? Under the RGGVY scheme. 47. Cooperatives or individual entrepreneurs . Can women become franchisees? Yes.e. issuance of electricity bills.17. deployment of franchisees is mandatory in the areas for the management of rural distribution in the areas. 22. responsibility of providing proper services to its consumers. 18.nic. How many households have been electrified ? . issuance of electricity connections. electrified. where projects have been financed under the scheme.838 electrified villages have been intensively As on 31.

770 BPL households.2006. How many villages will be electrified under the sanctioned RGGVY scheme ? The Government has sanctioned Phase-I of the RGGVY scheme with overall subsidy of Rs.93. on an application by the owner of occupier of any premises. which include free connection to 22. Quality and reliable power supply at reasonable rates.2008. give supply of electricity to such premises. a total of 27. 25.3. the target of rural electrification can be achieved ? The supply of power. 24. Whether with the given supply of power in states. Minimum lifeline consumption of 1 unit per household per day as a merit good by year 2012. The Policy aims at: • • • Provision of access to electricity to all households by year 2009. 2003 is the responsibility of distribution licensee. it will be the responsibility of State Government to supply at least 6-8 hours of electricity to villages electrified under RGGVY. 2003 stipulates that the concerned State Government and the Central Government shall jointly endeavour to provide access to electricity to all areas including villages and hamlets through rural electricity infrastructure and electrification of households. 23. intensively electrify 3. RGGVY envisages creation of rural electricity infrastructure.41 lakh electrified villages and to provide free electricity connection to 2.8. 2003. but as part of tripartite agreement signed with State Government. What is Rural Electrification Policy ? In compliance with Electricity Act. It is targeted to electrify 1. in turn of Section 43 of Electricity Act.33. . The Section stipulates that the distribution licensee shall.15 lakh unelectrified villages.000 crore.71. the Central Government notified the Rural Electrification Policy on 23.34 crore BPL households in these villages. within one month after receipt of the application requiring such supply.As on 31.610 rural households have been provided electricity connections. Section 6 of the Act.

requirement and availability of funds from different sources. etc. What steps have been taken by MOP for franchisee development? Ministry of Power has launched a National Programme for Franchisees in May 2006 to facilitate installation of franchises in states. At the time of launching of the programme. electricity to remote villages. 30. Ministry of Power has launched 3 “National Franchisee Development Programme. 2008 benefiting 289 and 88 participants respectively. provision of suitable transmission and sub-transmission network. deployment of franchisee.26. Franchisee training programme targets coverage of about 10(ten) ToT programmes and 3 (three) programmes for franchisee development have been conducted upto March.” It has two component namely Training of Trainers(ToT) and ToT programme targets to develop 2000 trainees Training of Franchisees. What instructions have been given to states for comprehensive and sustainable development of rural electricity infrastructure? Rural Electrification Plans to States have been advised to formulate their achieve the goal of providing access to all households. The Rural Electrification Plan is to map the requirements in respect of rural electrification and detail the electrification delivery mechanism(grid or stand alone) planning for inter alia. REC circulated franchisee guidelines to all the States in May. 2006. The Plan may be linked to and integrated with district Development Plans as and when such plans become available. the availability of sufficient power. Twelve states have so far submitted their final/draft RE Plans. The plan should be intimated to the Appropriate Commission.000 participants. across the country. determination of bulk supply tariff for franchisees. 27. Development of capacity building of franchises is being pursued by the Ministry of Power with REC & USAID. .

Delays in Panchayat certificates for village electrification as per revised definition. Lack of awareness among villagers for taking new connections. Shortage of material and increased prices. Very high rates quoted by contracting agencies. Delays in land acquisition for 33/11KV sub-stations. ******** .28. Delays in the issue of road permit and way bills. Limited number of good agencies able to execute turnkey jobs. Very poor upstream rural electricity infrastructure in some states. Delays in taking over of physical assets created by Central Public Sector Undertakings (CPSUs) under RGGVY by state utilities. Delay in finalisation of BPL lists by some states. What are the issues which have affected smooth implementation of RGGVY. Delay in forest clearance. The following issues have affected smooth implementation of the programme:i) ii) iii) iv) v) vi) vii) viii) ix) x) xi) xii) xiii) xiv) Delay in receipt of Detailed Project Reports (DPRs). Difficult terrain in some cases. Refusal to waive state and local taxes on materials by some states.