Differential Benefits of Rural Electrification | 11 Sep 2024
Why in News?
Recently, a study based on the 2011 census examined the effects of the 'Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY)' programme, which aimed to electrify over 400,000 villages across India.
- RGGVY (launch-2005) was renamed as the Deen Dayal Upadhyay Gram Jyoti Yojana (DDUGJY) in 2014.
What are the Key Highlights of the Study?
- Disproportionate Benefits to Larger Villages: Larger villages (around 2,000 people) experienced substantial economic benefits from full electrification than smaller villages (300 people).
- Smaller villages experienced a "zero return" on electrification even after 20 years.
- Larger villages showed a much higher return of 33%, with a 90% chance that the economic benefits would outweigh the electrification costs.
- Impact on Per-Capita Monthly Expenditure: In smaller villages, per-capita monthly expenditure showed minimal change after electrification, indicating limited economic benefits.
- In contrast, larger villages saw a significant increase in per-capita monthly expenditure, which doubled due to full electrification. This increase amounted to approximately Rs 1,428 (about USD 17) per month.
What is Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY)?
- About: It is a rural electrification scheme of the Ministry of Power (MoP) that aims to provide continuous 24x7 electricity supply in rural areas, aligning with the government’s broader vision of energy access for all.
- Components of the DDUGJY:
- To ensure judicious distribution of electricity to agricultural and non-agricultural consumers.
- Metering of distribution transformers, feeders, and consumers to reduce electricity losses and improve efficiency.
- Establishment of microgrid and off-grid to ensure electricity reaches remote and isolated areas.
- Nodal Agency: The Rural Electrification Corporation Limited (REC) serves as the nodal agency responsible for the implementation of DDUGJY under the overall guidance of the Ministry of Power.
What are Other Initiatives for Electrification?
- Saubhagya Scheme
- Integrated Power Development Scheme (IPDS)
- Ujwal Discom Assurance Yojana (UDAY)
- GARV (Grameen Vidyutikaran) App
Read More: Saubhagya Scheme
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Drishti Mains Question: Q. Rural electrification is a critical component of socio-economic development in India. Discuss. |
UPSC Civil Services Examination, Previous Year Question (PYQ)
Prelims:
Q.‘Net metering’ is sometimes seen in the news in the context of promoting the (2016)
(a) production and use of solar energy by the households/consumers
(b) use of piped natural gas in the kitchens of households
(c) installation of CNG kits in motor cars
(d) installation of water meters in urban households
Ans: (a)
Mains:
Q. “Access to affordable, reliable, sustainable and modern energy is the sine qua non to achieve Sustainable Development Goals (SDGs).” Comment on the progress made in India in this regard. (2018)