(a) whether the Union Government proposes to introduce National
Electricity Fund in the near future; and
(b) if so, the details thereof and the objectives of the fund?
(a) whether the Union Government proposes to introduce National
Electricity Fund in the near future; and
(b) if so, the details thereof and the objectives of the fund?
THE MINISTER OF STATE IN THE MINISTRY OF POWER ( SHRI K.C. VENUGOPAL )
(a) & (b) : Yes, Madam. Cabinet Committee on Economic Affairs (CCEA) has
approved the setting up of National Electricity Fund (Interest Subsidy Scheme)
to provide interest subsidy aggregating to `8466Crs on loan disbursement
amounting to `25,000Crs to the State Power Utilities- both in public and private
sector, to improve the distribution network.
Under the scheme, interest subsidy is to be provided on loans
taken by private and public power utilities in distribution sector for non-Rajiv
Gandhi Grameen Vidyutikaran Yojana (RGGVY) and non-Restructured
Accelerated Power Development and Reforms Programme (R-APDRP) scheme.
RGGVY, a flagship scheme of Government of India under implementation,
targets provision of access of electricity in all rural areas whereas R-APDRP is
for strengthening and up-gradation of distribution sector for reducing
Aggregate Technical and Commercial (AT&C) losses in urban areas.
The preconditions for eligibility are linked to reform measures
taken by the States and the amount of interest subsidy is linked to the
progress achieved in reforms linked parameters. For financial assistance from
NEF (Interest Subsidy) Scheme, the States have been categorized as `Special
category and focused states`, and `States other than special category and
focused states`.Government Order for the scheme has been issued. Rural
Electrification Corporation (REC) is the Nodal Agency to operationalize the
programme under the guidance of Steering Committee chaired by Secretary
(Power), constituted for the scheme.