Aovious : Saubhagya

Pradhan Mantri Sahaj Bijli Har Ghar Yojana (PMSBHGY) – “Saubhagya”

Saubhagya scheme or Pradhan Mantri Sahaj Bijli Har Ghar Yojana is a 16,320 crore Central Government scheme. It was launched to provide electricity connections to over 40 million families in rural and urban areas by December 2018.

What is the need for the Saubhagya Scheme?

Even though, various efforts have been made to ensure universal connectivity under Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY) in rural areas and Integrated Power Development Scheme (IPDS) in urban areas, the problem of electricity access remains. Under the DDUGJY, a village is considered electrified if it meets certain parameters included in the Electricity Act, 2003. These are:

All public places such as schools, panchayat office, health centres, dispensaries and community centres have electricity connections.
10% of the households have an electricity connection.

Thus, there is no specification as to ‘universalisation’ at the household level. Also, the DDUGJY only focuses on connections and not on electricity supply. There are villages that are considered electrified under the scheme but have little to no availability of power for most of the day. Moreover, since the scheme focuses on only 10% of the households, it is often the most well off that are covered and the majority remain without electric power.Similarly, Integrated Power Development Scheme (IPDS) provides for creation of necessary infrastructure to provide electricity access in urban areas. Under the IPDS , there remain households that do not have access to electricity mainly because their economic condition is very weak.

From the above discussion it is clear that there is a need to improve not only access but availability as well. Hence, the Saubhagya scheme was visualised to be a truly universal scheme when it comes to electricity connections and access in the country. However, this scheme is not a ‘free electricity’ scheme but only one that provides for free connections for the poor.

How will the Saubhagya Scheme be implemented?

The Saubhagya scheme’s implementation is the duty of the respective State or Union territory. They are required to complete the electrification works by December 31, 2018. The Rural Electrification Corporation Limited (REC) will remain the nodal agency for the operationalisation of the scheme throughout the country.

The total outlay of the project is Rs. 16, 320 cr while the Gross Budgetary Support (GBS) is Rs. 12,320 cr. The outlay for the rural households is Rs. 14,025 crore while the GBS is Rs. 10,587.50 crore. For the urban households the outlay is Rs. 2,295 crore while GBS is Rs. 1,732.50 crore. The government will provide largely funds for the Scheme to all States/UTs. The states will make detailed project reports (DPRs) and submit them to the Centre following which funds will be disbursed.

How will the beneficiaries be identified?

The beneficiaries for free electricity connections would be identified using Socio Economic and Caste Census (SECC) 2011 data. However, un-electrified households not covered under the SECC data would also be provided electricity connections under the scheme on payment of Rs. 500 which shall be recovered by distribution companies/ power departments in 10 instalments through payment in the electricity bill.

What are the expected outcomes of the Saubhagya Scheme?

The government specified expected outcomes of the Saubhagya scheme are:

Access to all willing households
Environmental upgradation by substitution of Kerosene for lighting purposes
Improvement education services
Better health services
Enhanced connectivity through radio, television, mobiles, etc.
Increased economic activities and jobs
Improved quality of life especially for women

How will the bills/revenue be collected?

The Gram Panchayat/Public institutions in the rural areas may be authorised to collect application forms along with complete documentation, distribute bills and collect revenue in consultation with the Panchayat Raj Institutions and Urban Local Bodies. Or, as usual, the discoms can collect the bills if necessary infrastructure exists.

Is there a renewable energy component in the Saubhagya scheme?

As is mentioned in the policy document, the scheme provides for solar power packs of 200 to 300 Wp with battery bank for un-electrified households located in remote and inaccessible areas, comprising of :

Five LED lights
One DC fan
One DC power plug

It also includes the Repair and Maintenance (R&M) of given products for 5 years.

This component is essential because it is often such households that are located in remote areas that have least access to electricity. Internationally, this problem is resolved by asking the consumer to pay a higher price for supplying electricity. This is done as most of the remotely located households in developed nations are usually large farms located centrally in their farmsteads stretching across hundreds of acres. This is not the case in India. The distribution companies in India cannot do that due to lack of purchasing power of most of the consumers located in far off inaccessible areas. Thus, the use of solar power packs has been modelled to reduce economic burden on the consumer from the discoms, if any.

How is the Saubhagya scheme different from ’24×7 Power For All’ initiative of the Government?

Earlier, the Government had launched the ’24 x 7 power for all’ initiative which was a joint initiative with the States. This covered all segments of the power sector – generation, transmission, distribution, energy efficiency, distribution companies’ health etc. Thus, its focus was broad based and on the entire value chain of the power sector to provide state/UT specific plans. The Saubhagya scheme on the other hand aims to provide last mile connectivity and electricity connections to all remaining un-electrified households in rural as well as urban areas. Its area of emphasis is thus narrower.

Conclusion

The Government of India has strived to provide universal electricity access since independence to all its citizens. Electric power has been recognized as the most important driver of modernization and technological progress. The government initiatives have thus been focused on providing access to electricity for all. The new schemes have been formulated based on the learnings and outcomes of the earlier existing schemes. In the Saubhagya scheme, the Government of India has focused on not only physical access to electricity but economic access to electricity as well. This will not only benefit the consumer at the individual level but the economy as well by allowing universal access to agricultural farmholds. Moreover, it will reduce the burden faced by women due to collection of firewood and exposure to smoke in the household from polluting sources of light. It will also allow more study hours for the children during the night especially in northern remote areas. Thus, it has an all round socio-economic benefit for all especially the poor and will be an important factor behind inclusive growth and open access to opportunity.


Name	Description
Deen Dayal Upadhyaya Gram Jyoti Yojana	To provide continuous power supply to rural India
Integrated Power Development Scheme	Creating and strengthening power infrastructure in urban areas.
Saubhagya Scheme	To provide last mile connectivity to electricity-less households
24 x 7 Power For All	To provide 24x7 power available to all households, industry, commercial businesses, public needs, any other electricity consuming entity
Ujjwal Discom Assurance Yojana (UDAY)	Financial Turnaround; Operational improvement; Reduction of cost of generation of power; Development of Renewable Energy; Energy efficiency & conservation