Let’s wake up to the Sun!

Electrifying Villages, Energizing India

SANJEEV BALODIA ,80

 CONTENT
• Introduction
• Objective
• Approach to Rural Electrification
• Scheme for Rural Electricity Infrastructure & Household
Electrification – RGGVY
• Definition of Electrified Village
• Involvement of Local Community in Rural Electrification
• Financial Assistance for Rural Electrification Projects
• Policy Provisions for Permitting Stand Alone Systems for
Rural Areas
• Policy Provisions for Bulk Power Purchase & Management
of Local Distribution in Rural Areas
• Review

‘ India lives in her villages’
~ Mahatma Gandhi
India Facts & Figures
• 72% of our population lives in rural India.
• 80,000 villages still remain unelectrified.
• 35% of our population still remains illiterate.
• 127th rank out of 162 nations in UN’s HDI
• Rural telecom, rural banking, irrigation pumps
continue to falter due to lack of stable power.
• India imports about 3/4th of our crude oil, and
the country's oil bill accounts for 37% of total
value of all imports. ($ 103 billion in 2009-10)
 Rural – urban divide: unequal
access to electricity
• In 2005, a total of 412 million people in India had
no access to electricity, with 380 million of
them(92% of total population) living in rural
areas and 32 million in urban areas (IEA, 2007).
According to recent IEA estimates, India is today
64.5% electrified, with an urban electrification
rate reaching 95.1% and a rural rate of only
52.5% (IEA, 2009b).
 Rural Electrification Policy
• Rural Electrification has been given a new deal under the
Electricity Act (E Act) 2003. Prior to the Act, rural
electrification was looked upon as a by-product of the
overall efforts of supplying electricity to all parts of the
country. But the E Act 2003 sets out separately the
objectives,goals and targets for rural electrification;
several Sections of the Act are focused on the problems
of implementing the new accelerated rural electrification
policy and plans launched in pursuance of the provisions
of the Act.
 According to IE ACT
• Section
Section4.5.The
TheCentral
CentralGovernment
Governmentshall,
shallafter
also formulate
Section
a national6.
consultation Thethe
with
policy, Appropriate
in Government
State Governments,
consultation State shall
with the prepare and
notify a national
endeavour
Governments policy,
toand
supply permitting stand
electricity
the State to alone
Commissions, forsystems
all areas rural
including
including those based
villages
electrification and on
bulkrenewable
forand purchasesources
hamlets. of powerofandenergy
and non-conventional
management of local sources of energy
distribution in rural) areas
for rural areas.
through
Panchayat Institutions, users’ associations, co-operative
societies, non-Governmental organisations or
franchisees.
INTRODUCTION TO RE POLICY

Electricity
The
Rural Central is an(“RE”)
Government
Electrification essential
has requirement
launched
is viewed in April,
as the for an
key for2005
all facets
ambitious
accelerating of our
scheme
rural life Gandhi
‘Rajiv and .itProvision
development has been
Grameen ofVidhyutikaran
Yojana
electricity (RGGVY)’
is essential with
to the goal
cater for of electrifying
requirements of all un-
recognized
electrified
as a basic human
villages/un-electrified hamlets
need.and
Itproviding
is
agriculture and other important activities including
the key
access
small and to
to mediumaccelerating
electricity economic
to all households
industries, khadi and in growth,
next
village five years
generation
for fulfillment
industries, coldofof
theemployment,
NCMP.
chains, elimination
health care, education and of
information
poverty andtechnology.
human development specially
in rural areas.
 OBJECTIVES OF RE POLICY

• Provision of access to electricity to all

households by year 2009.
• Quality and reliable power supply at
reasonable rates.
• Minimum lifeline consumption of 1 unit per
household per day as a merit good by year
2012
 Approach to Rural Electrification

• Grid connectivity and Distribution network upto 33/11 or

66/11 KV level.
• Where grid connectivity would not be feasible or not
cost effective, off-grid solutions based on stand-alone
systems may be taken up for supply
• Where neither standalone systems nor grid connectivity
is feasible and if only alternative is to use isolated
lighting technologies like solar photovoltaic .
• The State Governments should, within 6 months prepare
and notify a Rural Electrification Plan to achieve the goal
of providing access to all households.
 Scheme for Rural Electricity Infrastructure &
Household Electrification - RGGVY

• •Rural
The Central Government
Electricity has reviewed
Distribution Backbone the(REDB
existing
)
schemes of rural electrification recently and has
•Creation
launchedofa comprehensive programme
Village Electrification RGGVY. Under
Infrastructure (VEI)
the scheme, projects could be financed with 90% capital
• Decentralised Distributed
subsidy for provision of - Generation (DDG) and Supply
• Rural Household Electrification of BPL Households
 Changing Definitions of village Electrification

• Prior to October 1997

– village was classified as electrified if electricity is
being used within its revenue area for any purpose
whatsoever.
• In 1997, the definition was modified to provide
for the use of electricity to village habitations.
– 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
whatsoever.
 Changing Definitions of village Electrification

• March 2004
– a village would be declared electrified if:
• Basic infrastructure such as distribution transformer and
distribution lines are provided in the inhabited locality as well
as the dalit basti/hamlet where is exists. (For electrification
through non-conventional sources a distribution transformer
may not be necessary)
• Electricity is provided to public places like schools, panchayat
offices, health centres, dispensaries, community centres etc,
and
• The number of households electrified should be at least 10%
of te total number of households in the village.
Involvement of Local Community in Rural

Electrification
•The State
166(5) ThereGovernments
shall shouldbe
be a committee take steps
inconstituted
each forunder
bringing
district to be
The District Committee should the
•constituted
The Stateby
awareness Government
on electricity should
related set
issuesup a committee at the
Chairmanship theof Appropriate
the Chairperson of theincluding
Government -
Zila generation,
(a) District
distribution,level
to coordinate pursuant
energy to Section
andconservation
review 166(5)
and
the District
extension of
of the
energy Act within
efficiency andin
electrification
Panchayat/Chairperson of the Planning
energy-water
each district;
three months
Committee/ .
nexus
Collector among
of theelected Panchayat
district and should inter alia
representatives.
(b) to review
have the qualityfrom
representations of power supply
various and consumer
concerned district level
satisfaction;
agencies, consumer associations and other important
(c)stakeholders.
to promote energy efficiency and its conservation.

•The representation of women in District Committee

should be ensured.
 Financial Assistance for Rural
Electrification Projects

• RGGVY provides for 90% capital subsidy for creating/

augmenting a basic rural electrification backbone and
village electrification infrastructure
•ToAssistance
ensure thefrom public
revenue funds to village
sustainability electrification
of the rural electricity
projects
supply, wouldrequires
RGGVY be one time dispensation.
deployment Special efforts
of franchisees for the
should be made
management to distribution
of rural develop load in by promoting
projects economic
financed under the
activities
scheme withwith active involvement
a stipulation of consumers
that if conditionalities of so
thethat
scheme
arenot
notonly adequate revenue
implemented is generated
satisfactorily, to cover
the capital subsidythecould
cost be
of powerinto
converted supplied,
interestO&M expenses
bearing loans. and loan servicing but
also to ensure that the assets can be replaced in future
without the requirement of any capital subsidy.
 Financial Assistance for Rural
Electrification Projects

• For better results

 Use of IT for supply of electricity
 Energy efficient equipments
 Educating the masses for saving energy
 73rd Amendment
Policy Provisions Constitution ofStand
for Permitting India

Alone Systems for Rural Areas

"PART IX * THE PANCHAYATS 243.

Definition -In this Part, unless the context otherwise requires:-

• For the purposes of the eighth provison to
a) "district" means a district in a State;
section
b) "Gram Sabha"14 of the
means Act,
a body rural areas
consisting would
of persons registered
in the mean
electoralall rural
rolls areas
relating as defined
to a village comprised/ specified
within the area
of Panchayat
pursuantat thetovillage level;
the Seventy-Third Amendment
c) "Panchayat" means an institution ( by whatever name called) of
to the Constitution
self-government of India
constituted under [Article
article 243B, 243
for the ofareas
rural
the Constitution
d) "Panchayat area" means of theIndia].
territorial area of a Panchayat;
e) "village" means a village specified by the Governor by public
notification to be a village for the purposes of this Part and
includes a group of villages so specified.
Policy Provisions for Permitting Stand
Alone Systems for Rural Areas
• State government, shall notify the rural areas
preferably within 2 months of date of notification of
policy.
• A person exempted under eighth provison to section
14 from licensing would be free from licensing
obligation and determination of tariff and universal
supply obligation but has to pertain safety measure,
technical standard etc. .
• The retail tariff will be set, based on mutual agreement
between such person and consumers.
• Potential for local resource based generation exists
but to use it as modern commercial energy, we need
to increase its efficiency and increasing convienience
of using it..
Policy Provisions for Permitting Stand Alone
Systems for Rural Areas
• Special enabling dispensation for
standalone system upto 1 MW which is
based on cost effective proven technology
and use locally available resource.
• State government need to provide
institutional arrangements for back up
services and technical support for system
based on non conventional sources.
 Policy Provision for Bulk Power Purchase &
Management of Local Distribution
Management of local distribution:-
• Deployment of franchisee for management of local distribution
in rural area is considered necessary in order to ensure
revenue sustainability and improve services to the consumer.
• Panchayati Raj institutions will oversee the delivery of
services by the franchisees.
• Franchisee would be selected following a transparent
process and wherever feasible through competitive bidding.
• The contractual agreement should provide adequate bankable
security, such as bank guarantee which may be equivalent to
the value of energy supplied for a duration of three months.
.
Policy Provision for Bulk Power Purchase &
Management of Local Distribution

• The concept of undertaking electricity distribution through

franchisee is relatively new to the rural population. It would be
therefore necessary that the concept is properly explained
both to the intending franchisees and also to the consumers.
• To ensure the success of franchisee arrangement, it would be
necessary that the distribution licencee follows non-
discriminatory approach towards the franchisees in case of
power supply shortage.
• The State Governments should come out with time-bound
programs of suitable capacity building of franchisees,
consumer associations and Panchayat institutions
 Policy Provision for Bulk Power Purchase &
Management of Local Distribution
Bulk purchase of power and retail tariff:-
• Person exempted under section 13 may procure power
from the existing licensee of the area or any other source
Existing licensee
• Appropriate commission treat them as separate category
for determination of Bulk Price Purchase(BPP).
• If not determined competitively it should be based on
normative basis.
Other source
• The procurement price would be mutually agreed between
such person and the suppliers.
Policy Provision for Bulk Power Purchase &
Management of Local Distribution
Universal Service Obligation:-
• Where local distribution has been handed over to users
association, co-operative societies or NGO, such person
will have the universal service obligation for that area.
Thank
you