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MoP’s Presentation On Rural Electrification to Parliamentary Standing Committee on Energy

MoP’s Presentation On Rural Electrification to Parliamentary Standing Committee on Energy (February 18, 2005). Definition of Village Electrification. Prior To October 1997:

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MoP’s Presentation On Rural Electrification to Parliamentary Standing Committee on Energy

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  1. MoP’s Presentation On Rural Electrification to Parliamentary Standing Committee on Energy (February 18, 2005) Presentation is made available by Infraline.com

  2. Definition of Village Electrification • Prior To October 1997: “A village should be classified as electrified if electricity is being used within its revenue area for any purpose whatsoever.” • After October 1997: “A village will be deemed to be electrified if the electricity is used in the inhabited locality, within the revenue boundary of the village, for any purpose what-so-ever”. Contd… Presentation is made available by Infraline.com

  3. Definition of Village Electrification • New Definition (2004-05): “ A village will be deemed to be electrified if • 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. • Electricity is provided to public places like schools, panchayat offices, health centres, dispensaries, community centres etc. and • The number of households electrified should be at least 10% of the total number of households in the village. The above definition has come into effect from the year 2004-05. Presentation is made available by Infraline.com

  4. Status of Electrification Rural Electrification Total no. inhabited villages 587,556 No. of villages electrified (prov.) 474,982 No. of villages yet to be electrified 112,401 * * about 1,25,000 as per new definition Rural Households Electrification (Census 2001) Overall electrification in the country : Total no. of Households 1382.7 lakhs Households electrified 601.8 lakhs (43.52%) Households yet to be electrified 780.9 lakhs (56.48%) Presentation is made available by Infraline.com

  5. Status of Electrification Presentation is made available by Infraline.com

  6. Status of Electrification Presentation is made available by Infraline.com

  7. Progress of Village Electrification • During 6th & 7th Five year plan on an average 22000 villages were electrified every year. • During 8th plan only an average of 3700 villages were electrified per year. • During 9th plan this number reduce to about 2200 village per year. • During first two years of 10th plan only about 11000 villages have been electrified. Presentation is made available by Infraline.com

  8. Problems encountered in Rural Electrification • Rural areas : - Characterised by :low density network • long LT lines & poor quality of supply • low revenue realization • Deteriorating financial health of SEBs/Utilities in 1990’s • Outstandings to CPSU’s etc. • Reluctance / Inability to borrow from REC for village electrification. Presentation is made available by Infraline.com

  9. National Common Minimum Programme (NCMP) on Rural Electrification NCMP goal • augmenting and modernizing the rural electricity infrastructure • completion of rural households electrification in five years Presentation is made available by Infraline.com

  10. New Scheme • In order to achieve the objectives of NCMP CCEA has approved a New Scheme on RURAL ELECTRICITY INFRASTRUCTURE AND HOUSEHOLD ELECTRIFICATION All existing schemes of Ministry of Power merged into this scheme. Presentation is made available by Infraline.com

  11. Scheme on Rural Infrastructure and Household Electrification Objective • To provide rural electricity infrastructure and access to all the households within five years • Rural Electricity Infrastructure would also cater for requirement of: • Agricultural pump sets • Small and medium industries, khadi and village industries • Cold chain, • Health & Education sector • Communication & IT Presentation is made available by Infraline.com

  12. Scope Provision of 90% Capital Subsidy for: • 33/11 KV (or 66/11 KV) substations in blocks where they do not exist. • Electrification of Unelectrified villages. • Electrification of Unelectrified habitations with provision of distribution transformers. • Decentralised distributed generation and distribution for such villages where grid connectivity is either not feasible or not cost effective, excluding the villages to be covered by MNES through non-conventional energy sources. Presentation is made available by Infraline.com

  13. Scope • 100% grant for electrification of all unelectrified BPL households as per existing guidelines of KutirJyoti programme. • Households other than BPL would not be covered for capital subsidy. They would pay for their connection charges. Contd……. Presentation is made available by Infraline.com

  14. Cost Estimates of Scheme 1. Electrification of 1,00,000 Unelectrified villages with grid Extension including electrification of 10% Households(BPL) @Rs.8.86 Lakh/village (25000 villages would be covered under MNES programme) 8860 Cr. • Household Electrification of 1.88 Cr BPL households in electrified villages @ Rs. 1500/H/H 2820 Cr • Augmentation of backbone network in already electrified villages having unelectrified habitations @ Rs. 1 lac/villages for 4.62 Lac villages 4620 Cr ----------- 16300 Cr. Presentation is made available by Infraline.com

  15. Revenue Sustainability • Decentralised Management through Panchayat Institutions and other franchisees. • Bulk Supply Tariff (BST) to be determined ensuring commercial viability of Franchisee. • BST to be factored for determination of consumer tariff by SERC • Commitment of State Government to clearly provide required subsidy, if any, to State Utility. Presentation is made available by Infraline.com

  16. Revenue Sustainability Cost of Additional annual supply of Electricity to be met through: • Reduction of Technical losses • Reduction of commercial losses & Control of theft • Additional revenue from industrial and commercial consumers with higher economic growth. • Subsidies from State Government. Contd… Presentation is made available by Infraline.com

  17. National Electricity Policy Rural Electrification • Access to all households within next five years. • Distribution Licensee to cover cost of Electricity and related O&M expenses from consumer. • BPL households would need to be subsidised. • Subsidies to be targeted in efficient manner. • Participation of Panchayats, Local authorities, NGOs and Franchisees in cost recovery and O&M. Presentation is made available by Infraline.com

  18. Role of CPSU’s • CPSUs service would be made available to States as per their willingness and requirement. • CPSUs will assist States in formulation and/or execution of Rural Electrification projects. • MOU’s already signed by REC with PowerGrid, NHPC,NTPC and DVC. Presentation is made available by Infraline.com

  19. Allocation for Implementation of RE projects to CPSUs as intended by the states Presentation is made available by Infraline.com

  20. Allocation for Implementation of RE projects to CPSUs as intended by the states Presentation is made available by Infraline.com

  21. Status of Implementation(Accelerated electrification of 1 lakh villages and 1 crore households) Projects Sanctioned: 78 projects (Rs. 2543 crore) Presentation is made available by Infraline.com

  22. System Improvement Programmes for Strengthening of Rural Distribution • LOAN ASSISTANCE SCHEME OF REC to utilities for upgradation, modernisation and improvement of rural distribution network. (Rs. Cr.) • Performance during previous years 2001-02 2002-03 2003-04 Sanction 2989 3703 2714 Disbursement 1385 1622 2059 Presentation is made available by Infraline.com

  23. Pumpsets Energisation • Pumpsets energised till March ‘04 141 lakh • Potential to be exploited 63 lakh Balance potential mainly in the States of U.P., M.P., Orrisa, Bihar and West Bengal • States like AP, Karnataka, Maharashtra, Gujarat, TamilNadu, Punjab, etc. have overexploited the potential leading to faster depletion of ground water table resulting in: • Increased energy requirement • Increased subsidy bills and pressure on SEB’s Presentation is made available by Infraline.com

  24. THANK YOU Presentation is made available by Infraline.com

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