The demand of electricity in rural areas is increasing day by day due to increase in customer base, changes in lifestyle and consumption pattern which requires continual strengthening and augmentation of distribution network. However, the poor financial health of the distribution utilities has resulted in under - investment in the distribution network leading to poor upkeep and maintenance of assets, particularly in rural areas. Therefore, strengthening and augmentation of sub - transmission & distribution infrastructure is also considered necessary to ensure reliable and quality power supply in rural areas.
The Government of India has launched the scheme “Deendayal Upadhyaya Gram Jyoti Yojana” for rural electrification. The erstwhile Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY) scheme for village electrification and providing electricity distribution infrastructure in the rural areas has been subsumed in the DDUGJY scheme. Rural Electrification Corporation is the Nodal Agency for implementation of DDUGJY.
The Ministry of Power, Government of India has launched Deen Dayal Upadhyaya Gram Jyoti Yojana for rural areas with the following objectives:
The following are the scheme components:
The funding mechanism of DDUGJY is as under:
|Agency||Nature of support||Quantum of support
(Percentage of project cost)
|Other than Special Category States||Special Category States #|
|Govt of India||Grant||60||85|
|Discom Contribution*||Own Fund||10||5|
|Lender (FIs/ Banks)||Loan||
|Additional Grant from GOI on achievement of prescribed milestones||Grant||50% of total loan component (30%) i.e. 15%||50% of total loan component (10%) i.e. 5%|
|Maximum Grant by GOI (including additional grant on achievement of prescribed milestones)||Grant||75%||90%|
# Special Category States (All North Eastern States including Sikkim, J&K, Himachal Pradesh, Uttarakhand)
* Minimum contribution by Discom(s) is 10% (5% in case of Special Category States). However, Discom(s) contribution can go up to 40% (15% in case of Special Category States), if they do not intend to avail loan. In case, the Discom(s) do not avail loan, the maximum eligible additional grant would be 15% (5% in case of Special Category States) on achievement of prescribed milestones. The loan component would be provided by REC or by other FIs/Banks.
To access the complete guidelines, click here.
Source : DDUGJY portal
Last Modified : 7/3/2023
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