The Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY), also recognized as the Rural Electricity Infrastructure and Household Electrification Scheme, was inaugurated in 2005. Its primary aim was to extend electricity access to all rural regions of India. Over time, this initiative evolved into the Deendayal Upadhyaya Gram Jyoti Yojana and later into the "Saubhagya" scheme.
The core objectives of RGGVY were to electrify villages thoroughly, ensure rural households had electricity access, and provide free electricity connections to families below the poverty line. While connection was free, the consumption of power was chargeable. To execute these objectives effectively, the Ministry of Power collaborated with Central Public Sector Undertakings (CPSUs) like NTPC, NHPC, PGCIL, and DVC, offering project management assistance to states.
Funding for RGGVY was largely supportive, with 90% provided as a grant by the Government of India and the remaining 10% as a loan from the Rural Electrification Corporation (REC) to state governments. While substantial progress has been made in electrifying villages and offering connections, challenges in ensuring a dependable power supply persist.
Despite declaring all villages electrified, the endeavor to secure a 24/7 power supply across rural households continues. The scheme faces challenges such as ensuring last-mile connectivity to remote areas, maintaining reliable power supply quality, and ensuring the financial sustainability of power distribution companies.
A recent study highlights that the economic benefits of rural electrification under RGGVY were not uniformly distributed. Larger villages with more households witnessed significant economic gains, while smaller villages saw minimal economic improvement. Particularly, villages with around 2,000 people experienced a doubling of per capita monthly expenditure, compared to those with fewer than 300 people.
The research underscores the need for a more nuanced approach, considering village size and population density when planning electrification solutions. Smaller, remote villages could benefit more from off-grid solutions such as solar home systems, whereas larger communities might gain more from grid connections.
The study reveals that larger villages benefit more from electrification, potentially widening the economic disparity with smaller ones. This indicates that electricity access alone may not suffice for rural development, necessitating a comprehensive approach addressing various socio-economic factors.
Electrification offers numerous social benefits, including enhanced educational opportunities, improved healthcare access, and overall quality of life improvements. These non-economic impacts are crucial when evaluating electrification programs.
While rural electrification is vital for development, the findings emphasize the importance of customizing solutions to meet the distinct needs of different communities. Smaller, remote villages may require alternative strategies to fully benefit from electricity access and achieve economic growth.
Kutos : AI Assistant!
