(a) whether the Rural Electrification Corporation provide loan on concessional rates under the Minimum Need Programme; and
(b) if so, the reasons for non-completion of electrification of far flung villages in the States?
(a) whether the Rural Electrification Corporation provide loan on concessional rates under the Minimum Need Programme; and
(b) if so, the reasons for non-completion of electrification of far flung villages in the States?
THE MINISTER OF STATE IN THE MINISTRY OF POWER
( SHRIMATI JAYAWANTI MEHTA )
(a) : Loans under the Minimum Needs Programme (MNP) are
provided by Rural Electrification Corporation (REC) at rates
fixed by Government from time to time. The rate of interest for
MNP category loans given by REC to State Electricity Boards/Power
Departments, is 12.5% per annum and the period of re-payment of
loan is 30 years, including moratorium period of 5 years.
(b) : Priority areas for village electrification are decided
and determined by the State Governments/State Electricity Boards
keeping in view the availability of financial resources with the
State Electricity Boards/State Power Utilities and as per the
policy and the directions of the State Governments. Many of the
villages remaining for electrification in the far flung villages
are inaccessible. State Electricity Boards find it un-economical
to electrify these villages. In addition, paucity of
concessional resources has also affected the village
electrification programme. Some of the other reasons for slow
progress of electrification in far flung villages are inadequate
sub-distribution system facilities, disturbed conditions
prevailing in some States, non-repayment of dues of Rural
Electrification Corporation resulting in no cash flow, lack of
demand from the consumers due to backwardness and poor economic
conditions.