India   has   made   substantial   progress   in   achieving   rural  electrification   over   the   past   two   decades   with   96.7   percent   of  villages  electrified,  as  of  Jan  31st,  2014.  However,  the  progress  of  household  level  electrification  is  still  unsatisfactory  with  almost  45  percent  of   rural  households  not  having  access   to   electricity,  as   per   Census   2011.   Moreover,   while   the   power   supply   for  agriculture  is  subsidized,  this  subsidy  is  not  efficiently  managed  or  monitored.   Subsidized  power   is  utilized   for  both   agriculture  and   non-­‐agriculture   purposes,   which   defeats   the   purpose   of  subsidized  power  and  leads  to  power  outages  for  more  than  6-­‐8  hour  in  a  day  in  some  states.  Other  problems,  which  plague  the  power   sector,   are   the   high   technical   losses   (estimated   at   35  percent),   and   power   theft.   In   light   of   this   context,   the  Government   of   India   (GoI)   has   launched   the   Deen   Dayal  Upadhyaya  Gram  Jyoti  Yojana  (DDUGJY),  a  scheme  which  seeks  to   promote   feeder   separation   in   rural   areas,   as   has   been  implemented  in  certain  states  such  as  Gujarat  and  Rajasthan  and  also   achieve   the   objective   of   rural   electrification,   as   envisaged  under  the  erstwhile  Rajiv  Gandhi  Grameen  Vidyutikaran  Yojana  (RGGVY).  The  ultimate  objective   is   to   improve  both   the  quality  and   the   availability   of   power   supply   across   rural   areas   of   the  country.  This  brief  seeks  to  provide  an  overview  of  the  scheme,  including  the  scope  of  work,  the  implementation  process  and  the  current  status  with  regards  to  village  electrification.    

Ministry of Power Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY)

   

Key Features of DDUGJY • The DDUGJY is a flagship scheme

of the Ministry of Power. It seeks to achieve rural electrification by providing electricity to all households as well as institutionalizing feeder separation at the national level.

• The scheme has been launched

with an outlay of INR 43,033 crore for the period between 2015 and 2022 and the Rural Electrification Corporation (REC) is the nodal agency for the implementation of the scheme.

• As of April 2015, there were 18,452

un-electrified villages. A total of 11,271 villages have been electrified by 15th December 2016.

 Deen Dayal Upadhyaya Gram Jyoti Yojana   –  Creating Efficiency in Electricity Distribution  

     DDUGJY       2  

 

Rural Electrification – From RGGVY to DDUGJY    The   importance   of   rural   electrification   in   the   Indian   context   can’t   be   overstated.   Approximately   40  percent   of   rural   households   are   dependent   on   agriculture   as   their   main   source   of   income;   the   rural  countryside   is   dependent   on   electricity   for   running   irrigation   pump   sets   and   increasing   agricultural  production.   Today,   improving   electricity   supply   is   seen   as   a   policy   design   aimed   at   spurring   socio-­‐economic  development   in   the  rural  areas.  However,  despite   the   fact   that   the  GoI  has   launched  several  schemes   such   as   the   Rajiv   Gandhi   Grameen   Vidyutikaran   Yojana   (RGGVY)   and   the   Remote   Village  Electrification  programme  to  provide  electricity  in  the  rural  areas,  most  rural  households  lack  access  to  reliable  electricity.  Erratic  power  supply  in  the  form  of  long  outages  and  low  voltage  are  a  norm  rather  than  an  exception  in  the  villages  of  densely  populated  states  such  as  Uttar  Pradesh  and  Bihar.      As   per   the   data   available   on   the   GARV   dashboard   of   the   Ministry   of   Power   (MoP),   approximately   3  percent   of   these   villages   i.e.   a   total   of   18,452   villages   were   identified   as   unelectrified   villages   as   on  31.03.2015.   Four   states   –   Odisha,   Bihar,   Assam   and   Jharkhand   –   account   for   63   percent   of   the  unelectrified  (UE)  villages.  However,  these  numbers  do  not  convey  the  complete  picture  as  the  definition  of   an   electrified   village   (under   the   Rural   Electrification   Policy   of   2006)   only   includes   the   following  factors:    a)   Basic   infrastructure   such   as   Distribution   Transformer   and   Distribution   Lines   are   provided   in   the  inhabited  locality  as  well  as  a  minimum  of  one  Dalit  Basti/hamlet  where  it  exists  b)   Electricity   is   provided   to   public   places   like   Schools,   Panchayat   Office,   Health   Centres,   Dispensaries,  Community  Centres,  etc.  and  c)  The  number  of  electrified  household  stands  at  10%  of  the  total  number  of  households  in  the  village.    Now,  let  us  compare  the  village  electrification  data  to  the  number  of  rural  households  using  electricity  as  the   primary   source   of   energy   for   lighting.   According   to   the   NSSO   68th   Round   report   titled   ‘Energy  Sources  of  Indian  Households  for  Cooking  and  Lighting,  2011-­‐12’,  72.7  percent  of  rural  households  use  electricity   as   the   primary   source   of   lighting.   This   implies   that   approximately   27   percent   of   rural  households  are  dependent  on  other  sources  of  energy   for   lighting  purposes.  More   importantly,  across  the  four  states  accounting  for  the  majority  of  UE  villages,  the  level  of  HH  access  to  electricity  is  also  very  low,  with  electrified  HH  ranging  from  25.8  percent   in  Bihar  to  62.2  percent   in  Jharkhand.  This   implies  the   enormity   of   the   task   at   hand   i.e.   the   country   has   to   achieve   universal   rural   electrification   by  providing   electricity   to   all   rural   households   and   also   ensure   reliable   supply   for   agricultural  consumption,   which   accounts   for   approximately   22   percent   of   the   total   power   consumption   in   the  country  (as  per  the  data  available  from  Power  Finance  Corporation).      Therefore,  the  revamped  Deen  Dayal  Upadhyaya  Gram  Jyoti  Yojana  (DDUGJY)  seeks  to  not  only  ensure  electrification  of  all  UE  villages   in  mission  mode  but  also   focuses  majorly  on  the   feeder  separation   for  rural  domestic  and  agricultural  consumers  to  provide  better  and  more  reliable  power  supply.

     DDUGJY       3  

 

Scope of Work under DDUGJY – Going beyond Village Electrification  While  village  electrification  is  definitely  one  of  the  core  components,  the  DDUGJY  focuses  on  separation  of   power   supply   feeders   for   agricultural   and   non-­‐agricultural   feeders,   creation   and   augmentation   of  power  supply  infrastructure  for  better  transmission  and  distribution  of  power,  which  includes  metering  of  electricity  distribution  for  improved  energy  auditing.  The  scope  of  work  under  DDUGJY  is  presented  below:  

       

 

Feeder Separation: The   subsidized   nature   of   power   supply   to   agriculture   sector   leads   to   usage   of  subsidized  power  for  rural  non-­‐agricultural  purposes.  This  leads  to  wastage  of  resources  and  divergence  of   subsidies   from   the   target   beneficiary   group.   In   order   to   combat   this   trend,   the   states   of   Andhra  Pradesh,   Gujarat,   Haryana,   Punjab,   Karnataka,   Maharashtra,   Madhya   Pradesh   and   Rajasthan   had  introduced  feeder  separation,  so  as  to  differentiate  between  power  supply  for  agriculture  purposes  and  non–agriculture  purposes.  This  has  benefitted  consumers  especially  in  Gujarat  and  Rajasthan  where  the  

ü Creation of new sub-stations and augmentation of the capacity of existing stations to enhance electricity distribution

ü Modernization of existing

sub-stations & power lines to improve quality of electricity distribution

ü Installation of aerial bunch

cable to prevent electricity theft

 

ü Regrouping of consumers into agricultural and non- agricultural users

ü Creation of high tension lines for setting up new feeders (both agricultural and non- agricultural)

ü Installation of new transformers for distribution of electricity to agricultural and non- agricultural end users

 

ü RGGVY has been subsumed under the scheme to spread rural electrification.

ü BPL households are

eligible to get free electricity connection under the scheme.

ü Villages, which cannot be

part of grid connectivity, are provided electricity through off-grid solutions.

Feeder Separation Systems Strengthening Rural Electrification

Figure 1: Scope of work under DDUGJY

     DDUGJY       4  

 power  outages  have  reduced  by  almost  half   the  original  amount.1  Following   the  successful  example  of  these  States,   feeder  separation  has  been  instituted  as  a  Central  Government  policy  through  DDUGJY.  It  would  be  carried  out  physically  and  virtually,  which  would  entail  re-­‐orientation/re-­‐alignment  of  existing  lines   and   installation   of   rotary   switch   to   hardware   installation   in   sub-­‐stations   respectively.   Feeder  segregation  is  expected  to  have  a  significant  impact  on  power  usage  in  agriculture  intensive  states  like  Bihar,  Uttar  Pradesh  and  Haryana.    System Strengthening:  The  scheme  also  aims  to  augment  the  distribution  network  by  creation  of  new  sub  stations  with    the  capacity  of  66  KV/33  KV/22  KV/11  KV.  Augmentation  of  infrastructure  would  also  include  erection  of  new  transformers  and  strengthening  of  the  present  electricity  distribution  network.  Old/non-­‐functioning   sub   stations   are   to  be   replaced  by  new  systems   to  modernize   the   infrastructure.  System   strengthening  would   also   imply   greater   emphasis   on  metering   in   order   to   track   consumption  patterns   of   regions.   This  would   allow   state  power  departments/private  discoms   to  delineate   areas   of  high  power  losses,  and  suggest  measures  to  improve  the  situation  based  on  accurate  information.    Rural Electrification:  Under  RGGVY  and  subsequently  under  DDUGJY,  all  BPL  households  are  provided  with   free   electricity   connections   along   with   LED   lamps   at   the   rate   of   Rs.   3000   per   connection.  Habitations  with  population  greater   than  100  are  also  eligible   for  electricity  coverage  under   the  same  provision.   Free   connections   are   also   being   provided   to   BPL   households   in   villages   which   have   been  covered   under   the   Xth   and  XIth   plan.   There   is   a   special   record  made   of   the   SC/ST  BPL   families,  who  receive  free  connection  in  order  to  track  the  progress  of  electricity  supply  to  the  marginalized  sections  of  the  society.      Decentralized  Distribution-­‐cum-­‐Generation  (DDG):  Villages,  which  cannot  be  a  part  of  grid  connectivity  due   to   economic  or   geographical   reasons   are  provided   electricity   through  Decentralized  Distribution-­‐cum-­‐generation.   A   DDG   can   be   created   through   the   use   of   biomass,   biofuels,   biogas,   solar   energy  amongst   other   renewable   energy   options.   These   systems   can   also   be   utilized   to   support   the   power  infrastructure   in   villages  where   electricity   is   provided   for   less   than   six   hours   a   day.  As   per   the   latest  information,   4,604   DDG   projects   have   been   established.   Around   2,224   of   these   projects   run   as  standalone  systems  and  the  rest  operate  in  the  manner  of  a  micro/mini  grid  especially  in  the  states  of  Andhra  Pradesh,  Chhattisgarh,  Madhya  Pradesh,  Kerala,  Uttar  Pradesh  and  Uttarakhand.2    District  Electricity  Committee:  A  District  Electricity  Committee  has  been  formed  at  the  district  level  vide  a  Ministry  of  Power  notification  D.O.No.41/1/2015-­‐RE,   to   track  the  progress  of  schemes  administered  by  theMoP,  namely  DDUGJY  and  Integrated  Power  Development  Scheme  (IPDS).3  The  committee  would  be  headed  by   the  senior  most  Member  of  Parliament  of   the  region  along  with  other  MPs,  Sarpanch  of                                                                                                                                          1  http://www.worldbank.org/en/news/press-­‐release/2013/10/01/lighting-­‐rural-­‐india-­‐is-­‐feeder-­‐segregation-­‐the-­‐only-­‐answer  2  Lok  Sabha  Unstarred    Question  No.  336,  17/11/2016  3  IPDS:  A  Central  Government  scheme,  which  aims  at  feeder  separation,  strengthening  infrastructure  and  metering  for  the  urban  areas.  

     DDUGJY       5  

 

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%  of  Villages  electrified     %  of  Rural  HH  electrified    

Panchayats  as  well  as  the  representatives  of  the  concerned  Central  Public  Sector  Undertaking  (CPSU)  in  the  power  and  coal  sectors.  The  District  Collector  (DC)  is  to  be  the  convener  of  this  Committee  with  the  Senior  Engineer  of  the  concerned  Discom  appointed  as  the  Member  Secretary.  The  Committee  is  to  meet  once   in   three  months  with   the  overall  mandate  of  overlooking   the  quality  of  power   supply  as  well   as  consumer   satisfaction   for   the   region.   The   meeting   is   to   be   called   by   the   Member   Secretary   and   the  quarterly  reports  are  to  be  sent  to  the  nodal  agency  for  the  implementation  of  rural  electrification  under  DDUGJY  i.e.  REC.    

Village Electrification as compared to HH Electrification4    As mentioned above, the definition of village electrification is extremely narrow. Village Electrification is calculated on a sample cumulative basis and not an individual household basis, which leads to a wide discrepancy between village electrification and HH electrification as evident from the data below.

As evident from the data presented above, the level of village and HH electrification are different in most states. Only the states of Gujarat, Goa, Punjab and Andhra Pradesh perform equally well in both the fields of village and HH electrification. In all other states there is a visible discrepancy between village and HH level electrification. The worst performers are the states of Assam, Bihar, Jharkhand, Nagaland, Odisha and Uttar Pradesh. The data for all these states presents village electrification at 96 percent and above, however, all of

                                                                                                                                       4  GARV  dashboard  

     DDUGJY       6  

 them perform dismally in terms of rural HH level electrification. Jharkhand and Bihar are the worst

performers country wide, with rural HH level electrification standing at only 39 percent and 45 percent

respectively. The village electrification level of all states like Odisha, Uttar Pradesh and Madhya Pradesh

stand at 97.9 percent, 99.9 percent and 99.8 percent, however the HH level progress lags behind significantly

at 55 percent, 47 percent and 49 percent respectively. Overall rural electrification as per household level

stands at 76.80 percent, which requires energized efforts towards spreading rural electrification.

Implementation Model of DDUGJY  The  scheme  involves  a  diverse  range  of  stakeholders  ranging  from  power  utilities,  the  state  government  and  central   level  nodal  agencies.  The  nodal  agency  for  the   implementation  of   the  scheme  is  the  Rural  Electrification  Corporation  (REC).  A  Monitoring  Committee,  chaired  by  the  Secretary,  Ministry  of  Power  has  been  set  up  at   the  national   level  and   it   is  responsible   for  granting  approval   to  projects  as  well  as  monitoring  the  implementation  of  the  various  projects  taken  up  under  the  DDUGJY.    

                                 The   chain   of   policy   direction   flows   from   the  Monitoring   Committee   at   the   Central   level   to   the   Rural  Electrification  Corporation  (REC),  which  notifies  the  guidelines.  The  REC  carries  out  an  appraisal  of  the  Detailed  Project  Report  (DPR)  submitted  by  the  power  utilities  (both  public  and  private)  and  forwards  them  to  the  Monitoring  Committee  for  approval.  

Monitoring Commiittee

Rural Electrification

Corporation (REC)

State Level Standing Committe

(SLSC)

Power Utilities

ü Composed of Secretary, MoP, REC and other departments

ü Responsible for policy direction, sanctioning projects and monitoring

ü Nodal agency for implementation of the scheme under guidance of MoP; issues guidelines for the projects

ü Conduct quality check for the works

ü Constituted under RGGVY ü Recommendation of Detailed Project Report (DPR) to the

Monitoring committee

ü Both private and public discom companies are included in Power Utilities ü Preparation of DPR for implementation of projects and submission to REC ü Establishment of dedicated project implementation cell at the district

level

Figure II : Implementation model of DDUGJY

     DDUGJY       7  

 Human Resource to monitor the progress of Village Electrification – Gram Vidyut Abhiyanta (GVA)  In order to accurately monitor the spread of village electricity, a Gram Vidyut Abhiyanta (GVA) and District Vidyut Abhiyanta (DVA) would be deployed at each block and district respectively (for unelectrified regions). The GVAs would be the on-ground monitoring agency of the REC. They would overlook the implementation of the electrification process on the ground and upload the updated information on the RE mobile application, an app which provides real time data about the progress of electrification of these villages. The officer would also monitor the timelines for completion of the projects as well as their quality. Each GVA would make a field visit to five unelectrified villages in the assigned block per week. In the village s/he would have to meet the Sarpanch of the village and other inhabitants of the region in order to assess the development of the project. A weekly meeting would also be held with the DVA to update her/him about the progress. As of 31.12.2016,, there are 437 GVAs functioning in the field.

Creation of DPR by Power Utility

Recommendation of DPR by SLCC to REC

Submission of DPR to REC Appraisal of the project by REC

Submission of DPRs to Monitoring Committee

Approval of Project Cost by the Monitoring Committee

Tripartite Agreement between REC, State Government and Power

Utility

Award of Turn-key to the Utilities

 Processes to be followed under DDUGJY  Implementation   under   the   scheme   involves   several   processes   from   preparation   of   proposals,  sanctioning   of   grants,   to   awarding   contracts   for   implementation.   Stakeholders   ranging   from   power  utilities  to  central  and  state  level  agencies  have  a  major  role  to  play  in  the  process.  Given  below  is  an  overview  of  the  steps  to  be  undertaken  for  implementation  of  the  scheme.    

   

Funding under the scheme  The  scheme  is  to  be  primarily  driven  by  the  support  of  GoI  through  grants  at  different  stages.  The  State  governments  have   to  play   the   role  of   facilitators  by  ensuring  coordination  between  different  agencies  and  providing  necessary  inputs  such  as  land  and  statutory  clearances.  While  the  GoI  provides  60  percent  of   the  project  cost  as  a  grant,   the  remaining  40  percent  has  to  be  arranged  by  the  power  utilities.  The  minimum  contribution  of  the  power  utility  has  to  be  10  percent,  for  which  the  concerned  State  can  make  their   own   contribution.   Utilities   can   also   take   a   loan   to   provide   for   their   contribution.   The   GoI  reimburses   half   of   the   loan   component   on   achievement   of   pre-­‐determined   milestones.   For   special  

     DDUGJY       8  

 category  states5,  the  Central  contribution  increases  to  up  to  85  percent  and  the  mandatory  contribution  by  the  power  utility  decreases  to  5  percent.   The   scheme   can   play   a   major   role   in   rural   development   in   India.   Previous   experiences   of   state  governments  will  have  to  be  kept  in  mind  while  implementing  the  scheme  at  a  national  level.  Focus  has  to   be   on   effectively  monitoring   the   initiatives   being   taken   under   the   scheme.   There   is   need   to   assess  impact   at   regular   intervals   and   incorporate   the   learning   from   one   stage   into   strategies   for   another.  Overall,  proper  coordination  between  a  diverse  range  of  stakeholders  would  be  the  key  factor  to  ensure  proper  implementation  of  the  scheme  and  achievement  of  the  intended  objectives.    

Annexure I – State wise number of unelectrified villages (12/10/2015) and their progress6  

State Number of UE Villages To be electrified through grid (already sanctioned)

To be electrified through off-grid (yet to be sanctioned)

Odisha 3449 3238 211

Assam 2869 1735 1134

Bihar 1292 907

Jharkhand 2487 1418 455

Arunachal Pradesh 1578 1454 124

Uttar Pradesh 1189 1189

Meghalaya 911 894 17

Chattisgarh 1048 505 161

Rajasthan 471 336

Madhya Pradesh 359 211 148

Manipur 252 252

J&K 106 106

Nagaland 82 82 13

Uttarakhand 76 56

Mizoram 42 42 9

Karnataka 39 30

Himachal Pradesh 35 35

Tripura 26 26

West Bengal 14 14

   

                                                                                                                                       5  All  8  north-­‐eastern  states  and  3  Himalayan  States  of  Jammu  &  Kashmir,  Himachal  Pradesh  and  Uttarakhand    6  http://www.ddugjy.gov.in/mis/portal/RE-­‐APP/pdf/GVABookOctober-­‐2015.pdf