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The proposed rural electrification policy aims at creating an enabling environment for the State Governments to comply with their obligations under Section 6 and Section 43 of the Electricity Act.

Kolkata , Dec 23

THE Union Power Ministry is planning to come out with some new schemes for providing financial assistance to achieve the objectives of intensive rural electrification.

According to Ministry sources, a firm decision on this would be taken after the finalisation of the rural electrification policy, now under formulation. Currently, funds for investment in rural electrification are available under Rural Infrastructure Development Fund operated by National Bank for Agriculture and Rural Development (Nabard).

In addition loan assistance is also available from Rural Electrification Corporation.

The proposed rural electrification policy aims at creating an enabling environment for the State Governments to comply with their obligations under Section 6 and Section 43 of the Electricity Act. This makes it obligatory for the State Governments to supply power to all areas, including villages and hamlets and within a given time frame from the date of request for power. The main thrust of the policy would be to empower the rural population to choose and decide on their power supply options. This would also be in spirit of the new Act.

The Power Ministry felt that while on-grid power would be the most favoured route wherever it was feasible, off-grid solutions in the decentralised mode would have to be adopted in a synchronous manner. Especially in States which have lagged behind in rural electrification, a SEB-driven strategy may not work and these States should be encouraged to opt for off-grid captive generation, even if grid supply can be provided

The Power Ministry felt that since rural electrification was being viewed as a prime mover for rural development, electricity for all was an essential pre-requisite that needs to be fulfilled. It was also felt that a new momentum was warranted by the fact that the pace of village electrification had declined in the Eighth and the Ninth Plan period.

While nearly 1.l2 lakh villages were electrified in the Sixth Plan, the figure stood at one lakh in the Seventh Plan, before slipping to 18,500 in the Eighth Plan and only 11,200 in the Ninth Plan.

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