9th April, 2003
Ministry of Power  


ELECTRIFICATION OF VILLAGES IN TENTH FIVE YEAR PLAN


Rajya Sabha

Cabinet Committee on Economic Affairs has approved a total grant of 563.87 crore for the Tenth Plan as interest subsidy on loans for rural electrification of unelectrified villages under Accelerated Rural Electrification Programme. An amount of Rs.100 crore has been provided in the budget of 2003-04 as interest subsidy under Accelerated Rural Electrification Programme. The salient features of this programme are :

    • The interest subsidy will be at the rate of 4 per cent.

    • The interest subsidy would be provided as grant for the loans to be taken for rural electrification of un-electrified villages including dalit bastis, hamlets and household. Rural Electrification would be through Conventional as well as Non-Conventional sources of energy.

The targets and size of implementation of village electrification are decided by the State Governments/State Power utilities in accordance with their priorities, policies and availability of financial resources. However, during the year 2002-03, 5655 villages have been reported to be electrified.

This information was given by Smt. Jayawanti Mehta, Minister of State for Power in a written reply to a question by Shri Rama Murni Reddy Sirigireddy and Shri K. Rama Mohana Rao in Rajya Sabha today.