mop’s presentation on rural electrification to parliamentary standing committee on energy

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MoP’s PresentationMoP’s Presentation

OnOn

Rural Electrification to Rural Electrification to

Parliamentary Standing Committee Parliamentary Standing Committee

on Energyon Energy

(February 18, 2005)


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Prior To October 1997:

“A village should be classified as electrified if electricity is being used within its revenue area for any purpose whatsoever.”

After October 1997:

“A village will be deemed to be electrified if the electricity is used in the inhabited locality, within the revenue boundary of the village, for any purpose what-so-ever”.

Contd…

Definition of Village Electrification


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Definition of Village Electrification

New Definition (2004-05):“ A village will be deemed to be electrified if

i. Basic infrastructure such as distribution transformer and distribution lines are provided in the inhabited locality as well as the dalit basti/hamlet where it exists.

i. Electricity is provided to public places like schools, panchayat offices, health centres, dispensaries, community centres etc. and

i. The number of households electrified should be at least 10% of the total number of households in the village.

The above definition has come into effect from the year 2004-05.


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Rural ElectrificationTotal no. inhabited villages 587,556

No. of villages electrified (prov.) 474,982

No. of villages yet to be electrified 112,401 *

* about 1,25,000 as per new definition

Rural Households Electrification (Census 2001)

Overall electrification in the country :

Total no. of Households 1382.7 lakhs

Households electrified 601.8 lakhs (43.52%)

Households yet to be electrified 780.9 lakhs (56.48%)

Status of Electrification


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# Priority States with most of the un-electrified villages

Un-electrified Villages

Un-electrified Households 2001 (lakh)

Un-electrified Households

1991 (%)

Uttar Pradesh 40,080 (41%) 165 (80%) 89%

Jharkand 21,695 (74%) 34 (90%) -

Bihar 19,224 (50%) 120 (95%) 95%

Orissa 9,326 (20%) 55 (81%) 83%

W. Bengal 6,205 (16%) 89 (80%) 82%

Assam 5,604 (23%) 35 (83%) 88%


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States in descending order of number of uncovered households

Un-electrified Villages

Un-electrified Households 2001

(lakh)

Un-electrified Households 1991

(%)

Andhra Pradesh -- 51(40%) 63%

Rajasthan 613 (1.6%) 40(56%) 78%

Maharashtra -- 38(35%) 42%

Madhya

Pradesh

1,332 (2.5%) 31(38%) 65%

Tamil Nadu -- 24(29%) 55%

Karnataka 295 (1.1%) 19(28%) 58%

Chhattisgarh 1,188 (6%) 18(54%) --



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Progress of Village Electrification

During 6th & 7th Five year plan on an average 22000 villages were electrified every year.

During 8th plan only an average of 3700 villages were electrified per year.

During 9th plan this number reduce to about 2200 village per year.

During first two years of 10th plan only about 11000 villages have been electrified.


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Rural areas : - Characterised by : low density network

long LT lines & poor

quality of

supply

low revenue

realization

Deteriorating financial health of SEBs/Utilities in 1990’s

Outstandings to CPSU’s etc.

Reluctance / Inability to borrow from REC for village electrification.

Problems encountered in Rural Electrification


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NCMP goal

• augmenting and modernizing the rural electricity

infrastructure

• completion of rural households electrification in five years

National Common Minimum Programme (NCMP) on Rural Electrification


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New Scheme

In order to achieve the objectives of NCMP

CCEA has approved a New Scheme on RURAL ELECTRICITY INFRASTRUCTURE AND HOUSEHOLD ELECTRIFICATION All existing schemes of Ministry of Power merged into this scheme.


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Scheme on Rural Infrastructure and Household Electrification

Objective

To provide rural electricity infrastructure and access to all the households within five years

Rural Electricity Infrastructure would also cater for requirement of:

i. Agricultural pump sets

ii. Small and medium industries, khadi and village industries

iii. Cold chain,

iv. Health & Education sector

v. Communication & IT


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Scope

Provision of 90% Capital Subsidy for:

33/11 KV (or 66/11 KV) substations in blocks where they do not exist.

Electrification of Unelectrified villages.

Electrification of Unelectrified habitations with provision of distribution

transformers.

Decentralised distributed generation and distribution for such villages

where grid connectivity is either not feasible or not cost effective,

excluding the villages to be covered by MNES through non-

conventional energy sources.


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100% grant for electrification of all unelectrified BPL households as per existing guidelines of KutirJyoti programme.

Households other than BPL would not be covered for capital subsidy. They would pay for their connection charges.

Contd…….

Scope


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Cost Estimates of Scheme

1. Electrification of 1,00,000 Unelectrified villages with gridExtension including electrification of 10% Households(BPL) @Rs.8.86 Lakh/village (25000 villages would be covered under MNES programme) 8860 Cr.

2 Household Electrification of 1.88 Cr BPL households in electrified villages @ Rs. 1500/H/H 2820 Cr

3. Augmentation of backbone network in already electrified villages having unelectrified habitations @ Rs. 1 lac/villages

for 4.62 Lac villages 4620 Cr ----------- 16300

Cr.


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Revenue Sustainability

Decentralised Management through Panchayat Institutions and other franchisees.

Bulk Supply Tariff (BST) to be determined ensuring commercial viability of Franchisee.

BST to be factored for determination of consumer tariff by SERC

Commitment of State Government to clearly provide required

subsidy, if any, to State Utility.


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Revenue Sustainability

Cost of Additional annual supply of Electricity to be met through:

Reduction of Technical losses

Reduction of commercial losses & Control of theft

Additional revenue from industrial and commercial consumers with higher economic growth.

Subsidies from State Government.

Contd…


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National Electricity Policy

Rural Electrification

Access to all households within next five years.

Distribution Licensee to cover cost of Electricity and related O&M expenses from consumer.

BPL households would need to be subsidised.

Subsidies to be targeted in efficient manner.

Participation of Panchayats, Local authorities, NGOs and Franchisees in cost recovery and O&M.


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CPSUs service would be made available to States as per their willingness and requirement.

CPSUs will assist States in formulation and/or execution of Rural Electrification projects.

MOU’s already signed by REC with PowerGrid, NHPC,NTPC and DVC.

Role of CPSU’s


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Allocation for Implementation of RE projects to CPSUs as intended by the

states

State No. of Districts

Name of Districts Implementing Agency

West Bengal 2 Bankura, Part of West Midnapur POWERGRID

1 Purulia NHPC

1 East Midnapur DVC

1 West Midnapur (Kharagpur Block) NTPC

All other districts WBSEB

Uttar Pradesh

3 Raebareli, Sultanpur and Sitapur POWERGRID

5 Ajamgarh, Mau, Balia, Devaria and Kushinagar

POWERGRID

All other districts Respective distribution

Cos.


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State No. of Districts

Name of Districts Implementing Agency

Bihar 7 Sitamari, Seohar, Darbanga, East Champaran, West Champaran, Samastipur and Madhubani

NHPC

29 Araria, Kishanganj, Purnia, Katihar, Madhepura, Saharsa, Supaul, Gopalganj, Siwan, Saran, Begusarai, Khagaria, Bhagalpur, Banka, Munger, Lakhisarai, Sheikhpura, Jamui, Nalanda, Patna, Bhojpur, Buxar, Kaimur(Bhabua), Rohtas, Jehanabad, Arwal, Aurangabad, Gaya and Nawada

POWERGRID

Allocation for Implementation of RE projects to CPSUs as intended by the

states


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State No. of Projects

Districts Unelectrified Villages

Household

Total Project

Cost

West Bengal 9 10 1372 40290 121

Uttar Pradesh 53 55 24224 856208 1743

Bihar 13 13 7604 488450 668

Rajasthan 3 3 175 6711 11

Total 78 81 33375 1391659 2543

Projects Sanctioned: 78 projects (Rs. 2543 crore)

Status of Implementation(Accelerated electrification of 1 lakh villages and 1 crore

households)


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LOAN ASSISTANCE SCHEME OF REC to utilities for

upgradation, modernisation and improvement of rural

distribution network.

(Rs. Cr.)

• Performance during previous years

2001-02 2002-03

2003-04

Sanction 2989 3703

2714

Disbursement 1385 1622

2059

System Improvement Programmes for Strengthening of Rural Distribution


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Pumpsets energised till March ‘04 141 lakh

Potential to be exploited 63 lakh

Balance potential mainly in the States of U.P., M.P., Orrisa, Bihar and West Bengal

States like AP, Karnataka, Maharashtra, Gujarat, TamilNadu, Punjab, etc. have overexploited the potential leading to faster depletion of ground water table resulting in:

Increased energy requirement

Increased subsidy bills and pressure on SEB’s

Pumpsets Energisation


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THANK YOU

mop’s presentation on rural electrification to parliamentary standing committee on energy

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