Govt sanctions subsidy for RGGVY

The government has sanctioned a subsidy of Rs 8,400 crore for the Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY), a programme that aims to provide electricity to all rural households by year 2009. 

"RGGVY is an important component of Bharat Nirman Programme, aiming intensive growth to bring socio-economic transformation and development of rural India," Power Secretary Anil Razdan said after inaugurating a national workshop on RGGVY here. 

RGGVY, launched in 2005, is proposed to cover 115,000 villages and provide free connections to 23.5 million below poverty line (BPL) households, he said, adding that under the scheme about 46,926 villages have already been electrified and 2.1 million free connections have been provided to poor households.

In the 11th Plan, the Planning Commission has approved Rs 28,000 crore for the implementation of RGGVY. Under the Plan, 316 new projects costing Rs 16,000 crore have been approved, which are likely to commence within next six months. He said that the material component of these projects is expected to be 80 per cent of the total cost and the electrical equipment industry will have to prepare itself to supply material within the specified schedule.

"The targets of electrifying 115,000 villages and release of free connections to 23.5 million BPL households under RGGVY need constant monitoring and coordination between various implementing agencies, REC and the Ministry of Power," Rural Electrification Corporation Chairman and Managing Director P Uma Shankar said.