IEA Commends India's Saubhagya and DDUGJY Schemes for Electrifying Rural India and Bridging Energy G

Team Finance Saathi

    27/Dec/2024

What's covered under the Article:

  1. India's electrification schemes like Saubhagya and DDUGJY have been praised by the IEA for their impact on rural electrification.
  2. Over 100 million people were connected to electricity by 2018 through these initiatives, significantly reducing the energy gap.
  3. The Revamped Distribution Sector Scheme will further enhance electrification in rural and tribal areas with a budget of US$ 35.54 billion.

India’s electrification efforts have garnered significant recognition from the International Energy Agency (IEA), which praised initiatives such as the Saubhagya Yojana (Pradhan Mantri Sahaj Bijli Har Ghar Yojana) and the Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY) in its World Energy Outlook report. These programs have played a critical role in bridging the electrification gap in rural India, ensuring that electricity reaches the most remote households and transforming the rural power supply landscape.

The Saubhagya Yojana, launched to ensure last-mile connectivity, has connected 2.86 crore households to the electricity grid. The DDUGJY program has successfully electrified 18,374 villages, making a significant contribution to the rural distribution network. Notably, in 2018, these efforts resulted in connecting nearly 100 million people to the electricity grid, which is comparable to the effort needed to close the electricity access gap in sub-Saharan Africa by 2030. The Saubhagya and DDUGJY schemes have been key to India’s rural electrification revolution, ensuring that electricity reaches un-electrified households and improving access to power in remote and underdeveloped regions.

As part of these efforts, projects worth US$ 21.70 billion (Rs. 1,85,000 crore) have been implemented to strengthen the distribution systems in rural areas, including upgrading substations and installing underground cabling. These measures have not only improved the quality of electricity supply but also enhanced grid reliability. Under the Revamped Distribution Sector Scheme (RDSS), the Indian government is further pushing to electrify households that were previously left out, especially those in Particularly Vulnerable Tribal Groups. This is being achieved with a substantial outlay of US$ 35.54 billion (Rs. 3,03,000 crore) for the period of 2021-22 to 2025-26.

The RDSS is set to play a pivotal role in upgrading power infrastructure and enabling the installation of smart meters to facilitate efficient power distribution. This initiative, which has already sanctioned US$ 30.73 billion (Rs. 2,62,000 crore), will ensure that power distribution is more reliable and that all households, particularly in rural and tribal areas, are provided with uninterrupted electricity.

India’s commitment to providing electricity to every household, even in the most remote and disadvantaged areas, is a significant milestone in its journey to universal electrification. The recognition from the IEA further underscores the importance of these programs in achieving sustainable energy access and fostering economic development in rural India.

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