Chanakya IAS Academy Blog


Question:The plan is to electrify every rural home in India by 2018. But the ground reality shows that many poor villagers may not be able to pay for it, putting a question mark on the initiative.Deendayal Upadhyaya Gram Jyoti Yojana (DDUGJY) – a scheme through which electricity will be provided to all rural households by 2018. Do you think that this act as a panacea to all rural household energy needs. Discuss this issue in the lights of the concerned scheme.

Suggested answer:

Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY):

Keeping in view the problems, the ministry of power has launched Deen Dayal Upadhyaya Gram Jyoti Yojana for rural areas having following objectives:

  • To provide electrification to all villages
  • Feeder separation to ensure sufficient power to farmers and regular supply to other consumers
  • Improvement of sub-transmission and distribution network to improve the quality and reliability of the supply
  • Metering to reduce the losses
  • Under DDUGJY, ministry of power has sanctioned 921 projects to electrify 1,21,225 un-electrified villages, intensive electrification of 5,92,979 partially electrified villages and provide free electricity connections to 397.45 lakh BPL rural households.
  • Under the programme, 90% grant is provided by central government and 10% as loan by Rural Electrification Corporation (REC) to the state governments. REC is the nodal agency for the programme.

Financial provisions:

  • Scheme has an outlay of Rs 76,000 crore for implementation of the projects under which government of India shall provide grant of Rs 63,000 crore
  • A total of Rs 14,680 crore worth projects have already been approved

Benefits from the scheme

  • All villages and households shall be electrified
  • Increase in agricultural yield
  • Business of Small and household enterprises shall grow resulting into new avenues for employment
  • Improvement in Health, Education, Banking (ATM) services
  • Improvement in accessibility to radio, telephone, television, internet and mobile etc
  • Betterment in social security due to availability of electricity
  • Accessibility of electricity to schools, panchayats, hospitals and police stations etc
  • Rural areas shall get increased opportunities for comprehensive development

Issues needed to be addressed

  • Cost-bearing capacity.
  • Quality and reliability.
  • Affordability is a major factor in the entire rural electrification programme. There is a question mark on the rural populace paying up to get electricity.
  • The rural electrification scheme this time, however, tries to curb the issue of power theft by directly changing the quality of the cable wire.


  • ‘Access to Clean Cooking Energy and Electricity’, a survey done by the Council on Energy Environment and Water .In Uttar Pradesh, Bihar, Jharkhand and West Bengal showed that nearly 50 percent of the people don’t have electricity while nearly two-third of the remaining households did not take electricity despite having power connection in the vicinity. If the problems related to GTDC(Generation, Transmission, Distribution, and Conservation) will be addressed properly then we we can serve or “Undo the last” to ensure development.
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