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The Cabinet Committee on Economic Affairs (CCEA) today approved a new Scheme to be known as “Scheme of Rural Electricity Infrastructure and Household Electrification” by replacing the existing scheme of “Accelerated Electrification of One Lakh Villages and One Crore Households”. The Minimum Need Programme (MNP) for rural electrification would also be merged in the new scheme.
The new scheme with 90 per cent capital subsidy would finance projects for creation of rural electricity distribution backbone of 33/11 KV or 66/11 KV substations, creation of village electricity infrastructure, and decentralised distribution and supply system. This scheme would also provide for 100 per cent subsidy for single point connection to households Below Poverty Line (BPL).
CCEA also gave its approval for implementation of Phase I of the scheme in the X Plan. It has been decided to obtain prior commitment of the States before grant of subsidy to the use of franchisees for the management of rural distribution in projects financed under the scheme and to the provision of the requisite revenue subsidies for the State Utilities by the State Government.
DS/HS/HK/LV
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