rural electrification policy

8/7/2019 rural electrification policy

http://slidepdf.com/reader/full/rural-electrification-policy 1/23

Let·s wake up to the Sun!

Electrifying Villages, Energizing India

SANJEEV BALODIA ,80



CONTENT� Introduction

� Objective� Approach to Rural Electrification

� Scheme for Rural Electricity Infrastructure & Household

Electrification ± RGGVY

� Definition of Electrified Village� Involvement of Local Community in Rural Electrification

� Financial Assistance for Rural Electrification Projects

� Policy Provisions for Permitting Stand Alone Systems for

Rural Areas� Policy Provisions for Bulk Power Purchase & Management

of Local Distribution in Rural Areas

� Review



�

72% of our population lives in rural India.

� 80,000 villages still remain unelectrified.

� 35% of our population still remains illiterate.

� 127th rank out of 162 nations in UN·s HDI

� Rural telecom, rural banking, irrigation pumpscontinue to falter due to lack of stable power.

� India imports about 3/4th of our crude oil, andthe country's oil bill accounts for 37% of totalvalue of all imports. ($ 103 billion in 2009-10)

India Facts & Figures

¶ India lives in her villages· ~ Mahatma Gandhi



Rural ± urban divide: unequal

access to electricity � In 2005, a total of 412 million people in India had

no access to electricity, with 380 million of

them(92% of total population) living in ruralareas and 32 million in urban areas (IEA, 2007).

According to recent IEA estimates, India is today

64.5% electrified, with an urban electrification

rate reaching 95.1% and a rural rate of only52.5% (IEA, 2009b).



Rural Electrification Policy

� Rural Electrification has been given a new deal under

the Electricity Act (E Act) 2003. Prior to the Act, rural

electrification was looked upon as a by-product of the

overall efforts of supplying electricity to all parts of thecountry. But the E Act 2003 sets out separately the

objectives,goals and targets for rural electrification;

several Sections of the Act are focused on the problems

of implementing the new accelerated rural electrification

policy and plans launched in pursuance of the provisionsof the Act.



According to IE ACT

� Section 4. The Central Government shall, after

consultation with the State Governments, prepare and

notify a national policy, permitting stand alone systems

including those based on renewable sources of energyand non-conventional sources of energy ) for rural areas.

Section 5. The Central Government shall also formulate

a national policy, in consultation with the State

Governments and the State Commissions, for rural

electrification and for bulk purchase of power andmanagement of local distribution in rural areas through

Panchayat Institutions, users¶ associations, co-operative

societies, non-Governmental organisations or

franchisees.

Section 6. The Appropriate Government shall

endeavour to supply electricity to all areas

including villages and hamlets.



INTRODUCTION TO RE POLICY

Electricity is an essential requirement for

all facets of our life and it has been

recognized as a basic human need. It isthe key to accelerating economic growth,

generation of employment, elimination of

poverty and human development specially

in rural areas.

Rural Electrification (³RE´) is viewed as the key for

accelerating rural development . Provision of

electricity is essential to cater for requirements of

agriculture and other important activities includingsmall and medium industries, khadi and village

industries, cold chains, health care, education and

information technology.

The Central Government has launched in April, 2005 an

ambitious scheme µRajiv Gandhi Grameen Vidhyutikaran

Yojana (RGGVY)¶ with the goal of electrifying all un-

electrified villages/un-electrified hamlets and providingaccess to electricity to all households in next five years

for fulfillment of the NCMP.



OBJECTIVES OF RE POLICY

� Provision of access to electricity to all

households by year 2009.� Quality and reliable power supply at

reasonable rates.

� Minimum lifeline consumption of 1 unit per household per day as a merit good by year

2012



Approach to Rural Electrification

� Grid connectivity and Distribution network upto 33/11 or

66/11 KV level.

� Where grid connectivity would not be feasible or not

cost effective, off-grid solutions based on stand-alonesystems may be taken up for supply

� Where neither standalone systems nor grid connectivity

is feasible and if only alternative is to use isolated

lighting technologies like solar photovoltaic .

� The State Governments should, within 6 months prepare

and notify a Rural Electrification Plan to achieve the goal

of providing access to all households.



Scheme for Rural Electricity Infrastructure &

Household Electrification - RGGVY

� The Central Government has reviewed the existing

schemes of rural electrification recently and has

launched a comprehensive programme RGGVY. Under the scheme, projects could be financed with 90% capital

subsidy for provision of -

�Rural Electricity Distribution Backbone (REDB)

�Creation of Village Electrification Infrastructure (VEI)

� Decentralised Distributed Generation (DDG) and Supply

� Rural Household Electrification of BPL Households



Changing Definitions of village Electrification

� Prior to October 1997

± village was classified as electrified if electricity

is being used within its revenue area for any

purpose whatsoever.

� In 1997, the definition was modified to

provide for the use of electricity to village

habitations.± 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 whatsoever .



Changing Definitions of village Electrification

� March 2004

±a village would be declared 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 is exists. (For electrificationthrough non-conventional sources a distribution transformer

may not be necessary)

� 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 te total number of households in the village.



Involvement of Local Community in Rural

Electrification

� The State Government should set up a committee at the

District level pursuant to Section 166(5) of the Act within

three months.

166(5) There shall be a committee in each district to be

constituted by the Appropriate Government -

(a) to coordinate and review the extension of electrification

in each district;

(b) to review the quality of power supply and consumer

satisfaction;

(c) to promote energy efficiency and its conservation.

The District Committee should be constituted under the

Chairmanship of the Chairperson of the Zila

Panchayat/Chairperson of the District PlanningCommittee/ Collector of the district and should inter alia

have representations from various concerned district level

agencies, consumer associations and other important

stakeholders.

�The representation of women in District Committee

should be ensured.

�The State Governments should take steps for bringing

awareness on electricity related issues including

generation, distribution, energy conservation and energy

efficiency and energy-water nexus among electedPanchayat representatives.



Financial Assistance for Rural

Electrification Projects

� RGGVY provides for 90% capital subsidy for creating/

augmenting a basic rural electrification backbone and

village electrification infrastructure� Assistance from public funds to village electrification

projects would be one time dispensation. Special efforts

should be made to develop load by promoting economic

activities with active involvement of consumers so thatnot only adequate revenue is generated to cover the cost

of power supplied, O&M expenses and loan servicing but

also to ensure that the assets can be replaced in future

without the requirement of any capital subsidy.

�To ensure the revenue sustainability of the rural electricity

supply, RGGVY requires deployment of franchisees for the

management of rural distribution in projects financed under the

scheme with a stipulation that if conditionalities of the schemeare not implemented satisfactorily, the capital subsidy could be

converted into interest bearing loans.



Financial Assistance for Rural

Electrification Projects

� For better results

Use of IT for supply of electricity Energy efficient equipments

Educating the masses for saving energy



Policy Provisions for Permitting Stand

Alone Systems for Rural Areas

� For the purposes of the eighth provison to

section 14 of the Act, rural areas wouldmean all rural areas as defined / specified

pursuant to the Seventy-Third Amendment

to the Constitution of India [Article 243 of

the Constitution of India].

73rd Amendment Constitution of India

"PART IX * THE PANCHAYATS 243.

Definition -In this Part, unless the context otherwise requires:-

a) "district" means a district in a State;

b) "Gram Sabha" means a body consisting of persons registeredin the electoral rolls relating to a village comprised within the area

of Panchayat at the village level;

c) "Panchayat" means an institution ( by whatever name called) of

self-government constituted under article 243B, for the rural areas

d) "Panchayat area" means the territorial area of a Panchayat;

e) "village" means a village specified by the Governor by public

notification to be a village for the purposes of this Part and

includes a group of villages so specified.



� State government, shall notify the rural areaspreferably within 2 months of date of notification of policy.

� A person exempted under eighth provison to section14 from licensing would be free from licensingobligation and determination of tariff and universalsupply obligation but has to pertain safety measure,technical standard etc. .

� The retail tariff will be set, based on mutual agreementbetween such person and consumers.

� Potential for local resource based generation existsbut to use it as modern commercial energy, we needto increase its efficiency and increasing convienienceof using it..

Policy Provisions for Permitting Stand

Alone Systems for Rural Areas



Policy Provisions for Permitting Stand Alone

Systems for Rural Areas

� Special enabling dispensation for

standalone system upto 1 MW which is

based on cost effective proven technology

and use locally available resource.

� State government need to provide

institutional arrangements for back up

services and technical support for systembased on non conventional sources.



Policy Provision for Bulk Power Purchase &

Management of Local Distribution

Management of local distribution:-

� Deployment of franchisee for management of local distribution

in rural area is considered necessary in order to ensure

revenue sustainability and improve services to the consumer.

� Panchayati Raj institutions will oversee the delivery of

services by the franchisees.

� Franchisee would be selected following a transparent

process and wherever feasible through competitive bidding.

� The contractual agreement should provide adequate bankablesecurity, such as bank guarantee which may be equivalent to

the value of energy supplied for a duration of three months.

.





� The concept of undertaking electricity distribution through

franchisee is relatively new to the rural population. It would be

therefore necessary that the concept is properly explained

both to the intending franchisees and also to the consumers.� To ensure the success of franchisee arrangement, it would be

necessary that the distribution licencee follows non-

discriminatory approach towards the franchisees in case of

power supply shortage.

� The State Governments should come out with time-boundprograms of suitable capacity building of franchisees,

consumer associations and Panchayat institutions





Bulk purchase of power and retail tariff:-

� Person exempted under section 13 may procure power

from the existing licensee of the area or any other source

Existing licensee

� Appropriate commission treat them as separate category

for determination of Bulk Price Purchase(BPP).

� If not determined competitively it should be based on

normative basis.

Other source

� The procurement price would be mutually agreed between

such person and the suppliers.





Universal Service Obligation:-

� Where local distribution has been handed over to users

association, co-operative societies or NGO, such person

will have the universal service obligation for that area.



Thankyou

rural electrification policy

Documents