ACCELERATED RURAL ELECTRIFICATION
PROGRAMME
Rs
563.87 CRORE ALLOCATED IN TENTH PLAN
Government has allocated
Rs 563.87 crore in the Tenth Plan under the Accelerated Rural
Electrification Programme (AREP). A scheme of Interest Subsidy
under the AREP for the electrification of unelectrified villages,
hamlets, dalit bastis and tribal villages. The salient features
of the Scheme are : assistance under AREP will be available for
electrification by conventional and non-conventional sources of
energy and the interest subsidy under the Scheme is four per cent.
Interest subsidy
under AREP Scheme will be provided to State Governments/Power
Utilities on loan availed by it from any financial institutions
like Rural Electrification Corporation, Power Finance Corporation,
Rural Infrastructure Development Fund, National Agricultural Bank
and Rural Development for carrying out rural electrification programmes
which help to achieve national objectives of the Government for
complete electrification of villages by 2007 and coverage of all
households by 2012. Funds would be provided under the scheme on
the basis of Net Present Value of the interest subsidies applicable
on disbursement under Accelerated Rural Electrification Programme.
Besides, Government
provides financial assistance to states under Pradhan Mantri Gramodaya
Yojana (PMGY) and Minimum Needs Programme (MNP) for rural electrification.
During the year 2002-03, an amount of Rs 363 crore and Rs 600
crore were released under PMGY and MNP respectively. In addition,
Rs 98.79 crore was released as grant to states under Kutir Jyoti
Programme during the year 2002-03. Under Kutir Jyoti Scheme, an
allocation of Rs.100 crore has been made for the year 2003-04.
