Rajiv Gandhi Grameen Vidyutikaran Yojna (RGGVY)

• Undue favours, violation of rules hamper rural electrification project reported by CAG
• Expenditure of Rs. 41.42 crore was incurred for ineligible works, payments for works not done or assets not created and unfruitful expenditure on assets not put to use.
• Diversion of funds and undue favours to contractors in the execution of the prestigious Rajiv Gandhi Grameen Vidyutikaran Yojna (RGGVY) leading to cost variations of Rs. 2,262 crore.
• It said inadequacies in identification and estimation of un-electrified villages and BPL beneficiaries at the planning stage had the impact of variations in cost estimates
• There were also instances of diversion of funds to the tune of Rs. 157.78 crore for non-RGGVY purposes as RGGVY funds were mixed with general funds of the state power utilities
• The Power Ministry did not conduct feasibility study before launching the scheme, despite recommendations from the 14th Lok Sabha’s Standing Committee on Energy that updated statistic should be obtained on rural electrification.

Related information

RGGVY-

• Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY) was launched in April-05 by merging all ongoing schemes.
• Under the programme 90% grant is provided by Govt. of India and 10% as loan by REC to the State Governments.
• REC is the nodal agency for the programme

The RGGVY aims at:

• Electrifying all villages and habitations as per new definition
• Providing access to electricity to all rural households
• Providing electricity Connection to Below Poverty Line (BPL) families free of charge

Infrastructure under RGGVY:

• Rural Electricity Distribution Backbone (REDB) with 33/11 KV (or 66/11 KV) sub-station of adequate capacity in blocks where these do not exist.
• Village Electrification Infrastructure (VEI) with provision of distribution transformer of appropriate capacity in villages/habitations.
• Decentralized Distributed Generation (DDG) Systems based on conventional & non-conventional energy sources where grid supply is not feasible or cost-effective

Implementation Methodology and conditions under RGGVY:

• Preparation of District based detailed project reports for execution on turnkey basis.
• Involvement of central public sector undertakings of power ministry in implementation of some projects.
• Certification of electrified village by the concerned Gram Panchayat.
• Deployment of franchisee for the management of rural distribution for better consumer service and reduction in losses.
• Undertaking by States for supply of electricity with minimum daily supply of 6- 8 hours of electricity in the RGGVY network.
• Making provision of requisite revenue subsidy by the state.
• Determination of Bulk Supply Tariff (BST) for franchisee in a manner that ensures commercial viability.
• Three tier quality monitoring Mechanism for XI Plan Schemes made mandatory.
• Web based monitoring of progress.
• Release of funds linked to achievement of pre-determined milestones.
• Electronic transfer of funds right up to the contractor level.
• Notification of Rural Electrification Plans by the state governments