1 / 27

Universal Service Obligation in Rural Electrification - Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY)

South Asian Forum of Infrastructure Regulators (SAFIR). Universal Service Obligation in Rural Electrification - Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY). Mr K Vidyasagar (IAS), Executive Director, Rural Electrification Corporation. Genesis of Rural Electrification in India.

aurora
Download Presentation

Universal Service Obligation in Rural Electrification - Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY)

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. South Asian Forum of Infrastructure Regulators (SAFIR) Universal Service Obligation in Rural Electrification - Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY) Mr K Vidyasagar (IAS), Executive Director, Rural Electrification Corporation

  2. Genesis of Rural Electrification in India • The Rural Electrification Programme in India initiated in the 1950’s. • In the 1960’s focus shifted to energisation of agriculture pump sets to enhance food security in the country. • Focus on enhancing access of electricity services to rural areas with the Minimum Needs Programme launched (1974). • Focus on enhancing access to the socially an economically disadvantaged through the Kutir Jyoti Programme (1998). • All programmes since the Minimum Needs Programme have had the objective of achieving universal access to electricity services. • RGGVY intends to do away with the piece meal approach and target the lowest possible denominator the rural household

  3. Slowdown in Rural Electrification in India • Rural Electrification (RE) has been the mandate of the states. • States have undertaken RE work through loans from REC and central schemes. • However with the deteriorating financial health of many SEB’s, rural electrification slowed down in the nineties • In VI & VII Plans, over a lakh villages were electrified in each Plan • From 1992 to 1999, only 17382 villages were electrified • From 2000-2005, number of villages electrified were 14620 only

  4. Central Schemes for Rural Electrification THE MINIMUM NEEDS PROGRAMME: • Started in Fifth Plan, Rural electrification in remote, far flung and difficult villages • Partly grants and partly loans KUTIR JYOTI: • Launched in 1988-89 • The main objective of the programme was to improve the quality of life of the poorest of the poor. • Covered the extension of a single point connection to “Below Poverty Line” households in rural India • 100% grant - especially for the Harijan and Adivasi families • Grant amount released up to 03/2006 - Rs. 61214 lakh • KJ/BPL connections released up to 03/2006 – Rs. 71.72 Lakh

  5. Central Schemes for Rural Electrification PRADHAN MANTRI GRAMODAYA YOJANA(PMGY): • Launched in 2000-01 but the Rural electrification component was added in the fiscal year 2001-02 • This assistance was extended to the state government in the form of a 30% grant • Main aim was to facilitate delivery of selected basic minimum services ACCELERATED RURAL ELECTRIFICATION PROGRAMME (AREP): • Introduced in 2003-04 • Interest subsidy of 4% ACCELERATED ELECTRIFICATION OF ONE LAKH VILLAGES AND ONE CRORE HOUSEHOLDS: • Launched in March 2004 by merging AREP and Kutir Jyoti programme • 40% capital subsidy and 60% loan assistance • Capital subsidy released: Rs. 385.61 crore • BPL grant Released: Rs. 58.7 crore

  6. Status of Village Electrification As on 31.03.2004 (20%)

  7. Status of Household Electrification (As per 2001 Census) Nos. in Crore (56%) (44%)

  8. Electricity Act 2003 The Electricity Act 2003 makes it obligatory for the government to supply electricity to rural areas – “The Appropriate Government shall Endeavour to supply electricity to all areas including villages and hamlets” Under proviso to Section 43 of the Electricity Act 2003 the Appropriate Commission would need to ensure as a part of universal service obligations that the national goal of providing access to households by year 2009 is complied with. The National Electricity Policy (NEP) 2005 The NEP states that the key development objective of the power sector is to supply electricity to all areas including rural areas as mandated in section 6 of the Electricity Act. Both the central government and state governments would jointly endeavour to achieve this objective at the earliest. The NEP also states a need to ensure electricity access to all households and that the electricity reaches the poor and marginal sections of the society at reasonable rates within the next five years. Policy Initiatives to Promote Universal Access to Electricity in Rural India

  9. The Rural Electrification Policy (REP) 2006 The REP aims at : Provision of access to electricity to all households by year 2009 – ensuring access to all. Quality and reliable power supply at reasonable rates – USO there but quantification has to be undertaken and benchmarks have to be developed Minimum lifeline consumption of 1 unit per household per day as a merit good by year 2012 – USO related to actual consumption of service. The RE Policy also states that in places where local distribution has been handed over to users’ association, co-operative society, panchayat Institutions or non-Government organization, the universal service obligation for the area would rest with that institution and the supply obligation of the licensee, if any, in that area, would be residual Policy Initiatives to Promote Universal Access to Electricity in Rural India

  10. Evolving Definition of Village Electrification • According to the definition of village electrification adopted in 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 whatsoever. • This definition was deemed restrictive and did not portray a true picture of rural electrification in the country – thus a new definition was adopted in April 2004 • According to the new definition of village electrification, a village would be declared electrified if: • Basic Infrastructure such as Distribution Transformer and Distribution lines are provided in the habited locality as well as Dalit Basti/hamlet where it exists • Electricity is provided to public institutions like Schools, Panchayat office, Health Centres , Dispensaries, Community centers etc • The number of households electrified should be at least 10 % of the total number of household in the village . • The Panchayat has to give certificate to this effect.

  11. The Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY)

  12. Rajiv Gandhi Grameen Vidhyutikaran Yojana (RGGVY) - Approach • RGGVY spells a change in focus in RE – a change to a supply driven initiative on a national scale – focused on creating electricity infrastructure at the household rather than village level • RGGVY recognizes the possibility of revenue sustainability of RE through franchisee development • All ongoing schemes merged into “Rajiv Gandhi Grameen Vidhyutikaran Yojana” (RGGVY) launched in April 2005 • 90% grant and 10% loan • Programme covers entire country and electrification is being undertaken as per the new definition

  13. Rajiv Gandhi Grameen Vidhyutikaran Yojana (RGGVY) – Main Aims … RGGVY Aims at … • Electrification of all villages and habitations • Provision of access to electricity to all households • Provision of Electricity Connections to Below Poverty Line (BPL) families free of charge In 5 years…

  14. Rajiv Gandhi Grameen Vidhyutikaran Yojana (RGGVY) – Addressing USO Concerns ….. RGGVY addresses USO concerns through - • Targeting complete village level electrification by 2009 and complete household electrification by 2012 • Development of a Rural Electricity Distribution Backbone (REDB) with a 33/11 KV (or 66/11 KV) sub-station in every block and distribution transformers of appropriate capacity in villages/habitations • Minimum per capita energy usage of at least one unit • Adequate arrangement for supply of electricity without discrimination in the hours of supply between rural and urban households – through the state electricity regulatory commissions and state governments

  15. Rajiv Gandhi Grameen Vidhyutikaran Yojana (RGGVY) – Implementation Methodology Through the creation of : • A Rural Electricity Distribution Backbone (REDB) with 33/11 KV (or 66/11 KV) sub-station of adequate capacity in every block where none exists. • Village Electrification Infrastructure (VEI) with provision of distribution transformer of appropriate capacity in villages/habitations. • Decentralized Distributed Generation (DDG) Systems based on conventional sources where grid supply is not feasible or cost-effective • Implementation methodology: • District based DPR’s, to be formulated by SPU’s/ CPSU’s • Execution on a turnkey basis • Electrification certificate by Gram Panchayats • Rural distribution management through franchisees

  16. Rajiv Gandhi Grameen Vidhyutikaran Yojana (RGGVY) • Role of the Nodal Agency - REC • Establishment of framework for implementation of project like : • ·       Technical specifications • ·         Procurement of and bidding conditions • ·         Guideline for project formulation • ·         Field appraisal • ·         Franchisees development • Coordination with implementing agencies/ State Governments. • Release of funds to implementing agencies • Monitoring and evaluation of project to ensure quality and timely implementation.

  17. Rajiv Gandhi Grameen Vidhyutikaran Yojana (RGGVY) • Role of the relevant Ministry • – Ministry of Power • Framing and notifying Policy for RE • Sanctioning projects through the Monitoring Committee • Releasing funds (Capital Subsidy) • Monitoring the programme • Constitution & Role of • Monitoring Committee (MC) • Set up under Chairmanship of Secretary Power • Representation from Planning Commission, Ministries of Finance, New & Renewable Energy, Rural Development and Panchayat Raj • Committee meets periodically to sanction projects and to monitor implementation

  18. Rajiv Gandhi Grameen Vidhyutikaran Yojana (RGGVY) - Role of CPSU’s CPSU’s are providing their services towards the programme in the following areas: ·       Project Formulation ·       System planning ·       Design engineering ·       Procurement of goods and services ·       Construction/implementation/ Commission ·       Project monitoring and supervision of quality of work ·      

  19. Rajiv Gandhi Grameen Vidhyutikaran Yojana (RGGVY) • Role of State Governments • Appointment of independent agency for monitoring and supervision of quality of works • Deployment of franchisees for the management of rural distribution • Determination of Bulk Supply Tariff to ensure commercial viability of franchisees • Provision of requisite revenue subsidy to the state utilities • Adequate arrangement for supply of electricity without discrimination in the hours of supply between rural and urban households. • Provision of an authenticated BPL List   • Enhancement of awareness on electricity related issues like Generation, Distribution, Energy conservation & energy efficiency among elected Panchayat representatives.    

  20. Rajiv Gandhi Grameen Vidhyutikaran Yojana (RGGVY) • Role of State Power Utilities • Formulation of DPRs/Providing data for formulation of DPRs • Provision of additional requirement of upstream system (110, 132, 220 KV) for the project area • Submission of claims of implementing agencies for release of funds • Energisation of works completed and taking over for O & M • Providing APL connections • ·         • ·       

  21. Rajiv Gandhi Grameen Vidhyutikaran Yojana (RGGVY) – Status of Projects

  22. Rajiv Gandhi Grameen Vidhyutikaran Yojana (RGGVY) - Role Of Panchayati Raj Institutions • PRI would have a supervisory/advisory role in RE and electricity supply under RGGVY • PRI’s play an important role of overseeing, in an advisory capacity, the delivery of service by the franchises • Subject to commercial viability and sustainability of electricity supply business not affected , the state government may assign larger role to PRI’s. • The state government could also encourage the PRI’s to • take on the responsibility of franchisee as and when such institutions have developed to the extent that they can undertake contractual obligations • raise resources from the market - in such cases state government to put in place mechanism for independent overseeing of the functioning

  23. Rajiv Gandhi Grameen Vidhyutikaran Yojana (RGGVY) - Achievement so far • 2005-06 • Works in 10,169 villages completed including intensification works in 350 villages • 2006-07 • Works in 28706 un-electrified villages and 11527 electrified villages • completed • Cumulatively, works in 50402 villages completed up to 2006-07 • Cumulatively, 7.31 Lakh Rural Households including 6.72 Lakh BPL • households connected up to 2006-07 • Franchisees deployed in about 45752 villages • 2007-08 • Works in 1546 un-electrified villages and 4724 electrified villages (total – 6270 villages) completed as on 08.06.2007 • 4.25 Lakh Rural Households including 2.63 BPL households • connected as on 08.06.20

  24. Rajiv Gandhi Grameen Vidhyutikaran Yojana Issues and Challenges for the Future • Need to focus on and give more importance to supply side linkages as a minimum of 20000 MW of power is required to meet demand from RGGVY. • Shortage of power is also leading to issues such as – • Concerns on proper utilization/ loss of assets • Viability concerns and credibility issues • Further resistance in the future • Magnitude of the task – to achieve the targets state utilities would have to gear up their effort by 10 times or electrify 60 lakh households per year • There is a need to put in place a strategy to facilitate productive use of electricity at the household level – to assist with load development and enhance viability

  25. Rajiv Gandhi Grameen Vidhyutikaran Yojana Issues and Challenges for the Future • Recovery of cost of operations - • Existing field situation evidence indicates that no due diligence is being undertaken to ascertain potential for recovery of the cost of operations • This may lead to open ended recurring subsidies after the programme is complete. • Franchisee Development is necessary to ensure viability of infrastructure – • Most franchisees are today outsourced services for meter reading and bill collection • Concerns on reluctance of utilities to let go of revenue rich areas • Leads to viability concerns and credibility issues • Need for feasibility studies to determine the optimal load mix, area coverage and number of consumers at the state level

  26. Rajiv Gandhi Grameen Vidhyutikaran Yojana (RGGVY) – The Road Ahead • 40000 villages targeted for 2007-08 • 48 Lakh BPL households targeted for 2007-08 • Budget allocation of Rs. 3983 crores for 2007-08

  27. Thank You

More Related