PM Modi pushes electricity for all with Rs 16,000 cr Saubhagya Scheme

PM Modi's launch of the Saubhagya Scheme is a push at one of his key election promises, with the deadline set seemingly in time for the next election.

NEW DELHI: Prime Minister Narendra Modi has launched the Saubhagya Scheme. The major objective of the ambitious project is to provide last-mile electrification, including in the remotest pockets of the country.

The government has set an ambitious target for the Saubhagya scheme. It has asked all state governments and union territories to complete the task of complete electrification by March 31, 2019. It is anyone’s guess if it is incidental that that deadline comes just ahead of when the next Lok Sabha election is set to take place.

Speaking at the launch of the scheme PM Modi said the electrification of households would have a cascading effect on education, health, communications, public safety, economy and the increased social mobility of women.

“Even 70 years after Independence, we still have 4 crore households out of 25 crore households do not have electricity. That is close to 20 percent. These are people who still live in the 18th century,” said PM Modi at the launch of the scheme. 

“The economically disadvantaged sections of society, who had to stand outside the village headman’s house or run around at government offices, will not get electricity connections at their doorsteps,” he added.

A key feature is the proposal to use 200-300 Wp solar packs with battery banks. These can be used to power five LED lamps, one fan, on power socket. The programme also includes repair and maintenance for five years.

The formal name of the programme is the Pradhan Mantri Sahaj Bijli Har Ghar Scheme, which has been acronymised as the Saubhagya Scheme. It features a total outlay of Rs 16,320 crore, of which the Centre would provide Rs 12,320 crore. State governments would bear 10 percent of the project cost. 

Of the total allocation, Rs 14,000 crore would be used for rural electrification, and Rs 2,300 crore for urban areas. 

Some of the other major highlights of the Saubhagya Scheme are:

* BPL cardholders to get free electricity
* Those above the poverty line can pay for electricity in EMIs
* 18,000 villages – 3 crore rural households - without electricity currently to benefit from the schemes
* Rs 16,320 crore outlay for the power scheme, a part of which will be borne by state governments
* Special focus on health and education for middle and low-income groups