PM Modi's Saubhagya scheme: 4 crore homes to get free power connections

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PM Modi's Saubhagya scheme: 4 crore homes to get free power connections

The decision will cost the government Rs 16,000 crore which will not be passed on to the poor, said PM Modi.

PM Modi today announced the "Pradhan Mantri Sahaj Bijli Ghar Yojana - Saubhagya" for electrification of households across the country. The scheme is meant to provide electricity to all households across India, rural and urban.

Under the scheme the government will provide free electricity connections to about 4 crore rural homes. The Saubhagya scheme was launched so that the poor can have access to electricity free of cost.

The scheme aims to cover all rural households by December end, this year. The government also announced that states and union territories need to complete the process of electrification by March 31, 2019.

Here's what the Saubhagya scheme is all about:

  1. The total appointed budget of the scheme has been laid out to be Rs 16,320 crore.
  2. The division in funding is as follows: 60% Government of India grant, 10% Utilities/State contribution, 30% loans.
  3. For special category states the percentage of government grant will be 85% while the states will be contributing 5%.
  4. The households eligible for free electricity will be identified on the basis of Socio-Economic and Caste Census of 2011.
  5. Households that do not fall under the scheme will also be provided electricity at a sum of Rs 500 which will recovered in 10 installments through electricity bill.
  6. Households in remote areas where it is not feasible to provide electricity will be provided with solar power packs of 200 to 300 Wp (Watt peak).
  7. A mobile app will be used to identify and register beneficiaries under the scheme.
  8. In rural areas, the Panchayat and other public institutions will be authorized to collect forms and other documentations along with bills.
  9. The Rural Electrification Corporation Limited (REC) has been appointed as the nodal agency for the implementation of the Saubhagya scheme.
  10. The government expects that the scheme will help in upgradation of environment by reducing the use of kerosene, improve education services, health services and will result in increased economic activities.

The decision will cost the government Rs 16,000 crore which will not be passed on to the poor, said PM Modi.

The Prime Minister said that the connections will be delivered at the doors of the rural poor.

He also said that the rural poor will not have to go after the government officials to avail the scheme.

The Prime Minister was speaking at a function to launch "Sahaj Bijli Har Ghar Yojna" -- the scheme for easy electricity to every household -- at the renovated ONGC Bhavan, renamed after BJP ideologue Deendayal Upadhyaya.

The announcement was made soon after the national executive meet of Bharatiya Janata Party.