The Cabinet Committee on Economic Affairs has approved the proposal of the Ministry of Power for continuing the Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY) in the 12th Plan for:

i. Completing spillover works of projects sanctioned in 10th and 11th Plan.

ii. Continuing the scheme for covering all remaining `census villages and habitations with population of above 100.

iii. Providing free electricity connections to BPL households at the rate of Rs 3000 per connection in villages and habitations with population of above 100.

iv. Extending DDG to grid connected areas to supplement the availability of power in areas where power supply is less than six hours a day.

The total requirement of capital subsidy will be Rs. 35,447 crore including Rs. 12,849 Crore towards spillover works. Out of the total requirement of capital subsidy of Rs. 35,447 Crore, Rs. 23,397 Crore will be met through GBS for 12th Plan and remaining Rs.12,050 Crore would spillover to 13th Plan.

During the 10th and 11th Plan, 648 projects (including 72 phase 2 projects sanctioned in the year 2011-12) covering 1,12,795 un-electrified villages, 4,02,364 partially electrified villages and 275.69 Lakh BPL households with total project cost of Rs. 42,060.44 crore have been sanctioned. As on 31.03.2012, electrification works in 1,04,496 un-electrified villages, intensive electrification in 2.48,553 partially electrified villages had been completed and free electricity connections to 19,425 Lakh BPL households were released. Capital subsidy of Rs. 26,151 crore was utilized under the scheme as on 31st March, 2012.

The RGGVY was launched in April 2005 with an objective of providing access to electricity to all rural households. Households belonging to Below Poverty Line (BPL) are provided connections free of cost. Ninety per cent (90 %) capital subsidy is provided by Government of India for projects under the scheme. The scheme was initially approved with capital subsidy of Rs. 5,000 crore for the last two years of the 10th Plan period ending March 2007. RGGVY continued in 11th Plan with capital subsidy of Rs. 28,000 crore. During 2011-12, the Planning Commission approved additional capital subsidy of Rs. 6,000 Crore.

Capital subsidy allocation continues RGGVY to complete spillovers, extend village electrification, and provide free BPL connections. Continuation of RGGVY in the 12th Plan authorises completion of spillover works from 10th and 11th Plan projects, continued coverage of villages and habitations with population above 100, provision of free electricity connections to BPL households, and extension of DDG to grid connected areas where supply is under six hours daily. The Plan retains the central capital subsidy financing model and apportions total subsidy requirements between the 12th Plan and spillover to the next Plan.