Rural electrification in India

Rural electrification is necessary to stimulate the growth of small-scale industries and promote a more balanced and diversified economy. Between 1950 and 2001-02, the number of villages electrified  had increased from a mere 3,000 to 5,19,000. The UPA Government had launched Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY) under which 90% grant was provided by Govt. of India and 10% as loan by REC to the State Governments to make the villages go electrified. This scheme has been now replaced with Deen Dayal Upadhyaya Gram Jyoti Yojana. This scheme focuses on feeder separation for rural households and agricultural purpose; strengthen the distribution and sub-transmission infrastructure, including metering at all levels in rural areas.

The scheme has budgetary outlay of 76,000 crore rupees for implementation of the projects of which Union Government will provide grant of 63,000 crore rupees.