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Modi’s Saubhagya scheme – All you need to know

saubhagya scheme
Image credits: Making India

The Government launched the Saubhagya scheme or Pradhan Mantri Sahaj Bijli Har Ghar Yojana in September 2017.

The Saubhagya scheme was launched to ensure electrification of all willing households in the country. Under the scheme, power connection will be provided free of cost to all poor families.

Other households would also be provided electricity connections on payment of Rs.500 (which shall be recovered by the power distribution companies/power departments in 10 instalments along with electricity bills)

However, the scheme provides only free power connection. The cost of electricity consumption will have to be paid by the households.

The Prime Minister had launched Deen Dayal Upadhyay Gram Jyoti Yojana in 2015. Under the scheme, 99.37% of villages have been electrified.

However, a village is declared to be electrified if 10% of the households are given electricity along with public places such as schools, panchayat office, health centres, dispensaries and community centres.

Hence, Saubhagya scheme was launched to provide electricity to all households.

A poor household cannot get an electricity connection for various reasons:

Hence, Saubhagya was launched to plug such gaps and address the issues of entry barrier, last mile connectivity and release of electricity connections to all un-electrified households.

Under the scheme, prepaid and smart metering schemes will be installed in the households. The household will have to pay in advance for a fixed amount of electricity.

The Rural Electrification Corporation Limited will be the nodal agency for the operationalisation of the scheme throughout the country.

Drawbacks of the Saubhagya scheme:

Benefits of the Saubhagya scheme

As per the Government, the scheme would benefit in the following ways:

The scheme would facilitate economic growth and employment generation:

The expenditure of over Rs 16,000 crore will create positive externalities which will further help in generating employment and benefit the economy.

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References:

Saubhagyascheme: All you need to know

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