Question : Electricity Connection to Poor Household

(a) whether the Union Government has prepared any scheme with the State Governments to provide electricity connection to every poor household in the country and if so, the details thereof;

(b) the details of such connections provided so far, State/UT- wise;

(c) whether there is any plan to route subsidies in power sector through Direct Benefit Transfer (DBT) and if so, the details thereof;

(d) the steps taken to streamline the subsidies in power sector; and

(e) whether a mechanism is needed to be put in place so that power from most efficient plants is utilized first to bring down electricity prices and if so, the guidelines issued in this regard?

THE MINISTER OF STATE (INDEPENDENT CHARGE) FOR POWER, NEW & RENEWABLE ENERGY AND THE MINISTER OF STATE FOR SKILL DEVELOPMENT & ENTREPRENEURSHIP

( SHRI R.K. SINGH)

(a) & (b) : Yes, Sir. Government of India launched Pradhan Mantri Sahaj Bijli Har Ghar Yojana–Saubhagya in October, 2017 to achieve universal household electrification by providing last mile connectivity and electricity connections to all households in rural and all poor households in urban areas across the country. As informed by the States on Saubhagya portal, 2.628 crore households were electrified up to 31.03.2019 across the country, since launch of the scheme on 11.10.2017. State-wise detail is given at Annexure.

(c) & (d) : The subsidies to specified category of consumers are provided by the State Governments. The Electricity Act, 2003 provides in Section 65 that if the State Government proposes to grant subsidy to any class of consumers it shall make available funds for this in advance to the concerned distribution company. The State Governments have been advised that if they propose to give subsidies they should give it through Direct Benefit Transfer (DBT). The tariff policy also mandates that direct subsidy is a better way to subsidize poorer consumer rather than cross subsidy (Clause 8.3 Tariff Policy 2016).

(e) : Merit order dispatch mechanism has been put in place in the country for procurement of required quantum of power by the DISCOMs at optimal cost. Under this mechanism, the power from most efficient plants with least variable cost are utilized first by the DISCOMs.
***********