Saubhagya scheme if launched & followed-up properly to benefit overall sector: APP

Prime Minister Narendra Modi today evening is likely to  launch electrification of households’ scheme called Sahaj Bijli Har Ghar Yojana ‘Saubhagya’, which may require an investment of Rs 17,000 crore for this scheme.

The scheme plans to electrify around 3 crore rural households. 1.5 crore households have already been electrified under Rural Electrification Plan. Central Government will fund 75 percent of investment, while 25 percent will be borne either by States or through debt.

Meanwhile, the power minister RK Singh in his conversation with CNBC-TV18 last week had said that the law will also ensure that power purchase agreements (PPAs) are not violated and in fact more are signed.

To throw more light Ashok Khurana, Director-General, Association of Power Producers is confident that if the government gets on with this scheme then they can do it within a year as well, especially after the way they already electrified rural houses.

When asked who will benefit from this scheme, Khurana said all will benefit because you will create demand for equipment, create demand for power and supply power to those who do not have access.

According to him, if the scheme can be followed up with minimum power allotment, it will be positive.

For the entire conversation, watch video