What is the issue?
- Pradhan Mantri Sahaj Bijli Har Ghar Yojana (‘Saubhagya’) launched in September.
- The policy has set a standard for itself without enough focus on its capacity to deliver results.
What is Saubhagya scheme about?
- This new scheme is just a way of refurbishing the Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY).
- The earlier scheme of rural electrification launched in July 2015, which aimed to electrify all un-electrified villages by May 2018.
- The objective of the Saubhagya scheme is to provide energy access to all by last mile connectivity to achieve universal household electrification in the country.
- Saubhagya makes grandiose promises to provide a free electricity connection to all willing Below Poverty Line households.
- It claims to ensure electrification of all willing households in the country on a payment of Rs. 500,which shall be recovered by the power distribution companies in 10 instalments along with electricity bills.
What are practical difficulties with the scheme?
- Payment of Bills -It expects the poor to pay the bills without providing any subsidy to ease their burden.
- Expecting poor households to bear the recurring burden of bills as per the prevailing tariff of DISCOMs is unimaginable.
- The government has conveniently overlooked the fact that for the poor in some States, the inability to pay an electricity bill is a big impediment
- Efficiency -Even if 90% of households are electrified in villages, there is no promise of minimum hours of supply.
- There is a power shortage even at this moment leading to scheduled and unscheduled load shedding, often up to 10 hours or more.
- Additional capability - This scheme would potentially require an additional 28,000 MW and additional energy of about 80,000 million units per annum, which is roughly 7% of India’s current installed power capacity.
- Considering these huge lapses managing this additional demand would prove to be challenging.
Source: The Hindu