Prime Minister Narendra Modi launched a new scheme – Pradhan Mantri Sahaj Bijli Har Ghar Yojana- to ensure electrification of all willing households in the country in rural as well as urban areas. The states and union territories are required to complete the works of household electrification by 31st of December 2018.

The beneficiaries for free electricity connections would be identified using Socio Economic and Caste Census (SECC) 2011 data. However, un-electrified households not covered under the SECC data would also be provided electricity connections under the scheme on payment of Rs 500, which shall be recovered by DISCOMs in 10 installments through the electricity bill. The expected outcome of the scheme is:

(a)    Environmental upgradation by substitution of kerosene for lighting purposes

(b)   Improvement in education services

(c)    Better health services

(d)   Enhanced connectivity through radio, television, mobiles, etc

(e)    Increased economic activities and jobs

(f)    Improved quality of life especially for women

For easy and accelerated implementation of the scheme, modern technology shall be used for household survey by using mobile apps. Beneficiaries shall be identified and their application for electricity connection along with applicant’s photograph and identity proof shall be registered on spot. The Gram Panchayat/Public institutions in rural areas may be authorised to collect application forms along with complete documentation, distribute bills and collect revenue in consultation with the Panchayat Raj Institutions and Urban Local Bodies. Rural Electrification Corporation Limited (REC) will remain the nodal agency for the operationalisation of the scheme throughout the country.

The total outlay of the project is Rs 16,320 crore while Gross Budgetary Support (GBS) is Rs 12,320 crore. The outlay for rural households is Rs 14,025 crore while the GBS is Rs 10,587.50 crore. For urban households the outlay is Rs 2,295 crore while GBS is Rs 1,732.50 crore.