Rajiv Gandhi Grameen Vidyutikaranyojana

Power supply, sustainability of infrastructure and contribution to rural development are important aspects of Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY) and concerns have been raised by various quarters in this regard. To address these issues, prior commitment of the States has been obtained before sanction of projects under the scheme for:

i) Guarantee by State Government for a minimum daily supply of 6-8 hours of electricity in RGGVY villages.

ii) Deployment of franchisees for the management of rural distribution for sustainability of projects financed under the scheme.

iii) Provision of requisite revenue subsidy by the State Government to the State Utilities as required under the Electricity Act, for BPL consumers, who have been provided connections under the scheme.

The Ministry of Power, to facilitate State Governments, issued "Franchisee Guidelines" containing details of various possible models, sample business plan, model agreement etc. This Ministry is also facilitating the process of appointment of franchisees by providing financial assistance for capacity building of existing as well as prospective franchisee under National Programme on Franchisee Training.

The State Governments are also required to prepare and notify a Rural Electrification Plan encompassing the plan for establishment of requisite distribution and transmission system and availability of adequate power supply in accordance with the Rural Electrification Policy (2006) to ensure sustainability of the infrastructure.

This information was given by the Minister of State for Power Shri K.C.Venugopal in a written reply to a question in Lok Sabha today.

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MA/VN