What is Rural Finance, Rural Electrification Programme, Challenges in Rural Electricity, Government Schemes Related to the Rural Electricity Programme & Projects

1. Empowering the Unplugged:
Driving Sustainable Rural
Electrification in India
Subject – Rural Finance

2. What is Development ?
Scenario 1 – Rural Ladies
- Cooking Fuel
- Water, safety security
Scenario 2 – Urban Ladies
- Transport
- Gas
- Internet
- Job

3. Rural electrification is a big challenge today :
* Sustained
* Affordable
* Quality Access to Electricity
56% of Rural households which have not yet been
electrified even though these are willing to pay tariff
for it, should be electrified.
Ensuring Secured Electricity access to all households
including poor and marginal sections of the society.
Current Scenario

4. “Electricity is a foundation for basic development needs and
essential for the betterment of lives. Limited or no access of
electricity has a negative impact on growth and affects basic
services like health, agriculture and study, which finally
touches all the lives and livelihoods”

5. • The basic infrastructure such as distribution transformer and or
distribution lines is made available in the inhabited locality
within the revenue boundary of the village .
• Any of the public places like schools, panchayat office, Health
Centres, Dispensaries, Community centres etc. avail power
supply on demand.
• Allows for mechanization of many farming operations , such as
threshing, milking, and hoisting grain of storage.
• Electricity can increase productive hours in a household
leading to positive outcomes on education and economic well
being. It can also spur innovation and lead to entrepreneurial
micro businesses ventures, and in time lead to greater
agricultural yields. Benefits also flow to the likes of schools,
banking and medical services.
What is Rural Electrification ?

6. Why do we need Rural Electrification (RE) ?
• India has experienced rapid economic growth resulting in 208% growth
in India’s energy consumption in past 20 years. Reliable & affordable
supply for growing energy need of 1.3 billion people necessities huge
efforts & infrastructure.
• Every year budget proposes on outlay of INR 20-30k crores for reliable
affordable electricity to all households.
• Successive governments have improved the rural infrastructure
including energy sector.
• RE can improve farm productivity, education, health & communication.

7. Understanding Rural Electrification
• Rural electrification is considered to be the backbone of the rural economy.
• The electricity generation capacity in India is the fifth largest in the world.
• India is the sixth largest consumer of electricity and accounts for 3.4
percent of the global energy consumption.
• Successful Rural Electrification has five key indicators –
1. Availability of Rural Electricity Infrastructure
2. Providing connectivity to households
3. Adequate supply of desired quality of power
4. Supply of electricity at affordable rates
5. Providing clean, environmentally benign and sustainable power in
efficient way.

8. Advantages of RE
• Increase in agriculture 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.
• Betterment in social security due to availability of electricity.
• Accessibility of electricity to schools, panchayats, hospitals and police
stations.
• Rural areas shall get increased opportunities for comprehensive
development.

9. Situation of RE in India
• Nearly 400 Million Indians have no access to electricity
• There are nearly 56% that are not electrified even though they are
willing to pay for it. The problem is not one of distribution, but of
provision. Many people Attempt to steal electric power. The electric
company then responds with punitive “ tampering tariffs’ that require
payment for all electricity that the fraudulent connections & meters
have high stolen.
• The result is that the underfunded electric power company reduces
service to the amount of electricity it can afford to produce . The
electric companies therefore also prefer to serve large institutional
customers that pay their bills

10. Cont.
Currently, all the villages in India have been electrified 29th April 2018but it doesn't mean that
all households are electrified. By India's own set standards, only 10% of households in a
village must have electricity for it to be considered electrified. As of August 2018, 91% of the
total households are electrified in India. Rural areas in India are electrified non-uniformly, with
richer states being able to provide a majority of the villages with power while poorer states still
struggling to do so.

11. • Rural electrification corporation was established in
1969.
• Its main objective is to finance & Promote rural
electrification all over the country.
• Apart from providing loan assistance to SEBs &
Equipment infrastructure.
• It is also managing the Rural electrification
Programmed of the Ministry of Power (MoP)
• In the past 10 years REC has completed works in
190,858 villages have been completed and free
connections to over 10 million below poverty line
(BPL) households have been released.
Rural Electrification Corporation

12. • Government of India had launched Deen Dayal Upadhyaya Gram Jyoti Yojana
(DDUGJY) in December 2014 for the rural areas with the objectives of
electrification of all un-electrified villages Similarly, Pradhan Mantri Sahaj Bijli
Har Ghar Yojana
• Saubhagya was launched in October, 2017 for electrification of rural and urban
poor households in the country.
• SAUBHAGYA was launched with the objective to achieve universal household
electrification by providing electricity connections to all un-electrified households
in rural areas and all poor households in urban areas of the country.
• A total of 2.817 crore households were electrified since the launch of
SAUBHAGYA, up to 31.03.2021. Thereafter, some States again reported that 11.84
lakh households remain to be electrified. Electrification of these households was
again sanctioned till date, a total 2.86 crore households have been electrified.
Policies of the Government

13. • In India, two third population and 70% workforce
residing in rural areas.
• Rural economy constitutes 46 per cent of national
income. Despite the rise of urbanisation more than
half of India’s population is projected to be rural by
2050.
• Today 97.6% of the Indian households have been
electrified.
Some Facts and Figures
Changing share of Urban and Rural populations in India (%):1950 to 2050.
Future estimations by the United Nations,Department of Economic and Social Affairs , Population Division, 2012, as represented in Figure2, shows that
close to 2050 more people in India will stay in cities rather than villages.
(PDF) Population Trends of Urban India. Available from:
https://www.researchgate.net/publication/305911108_Population_Trends_of_Urban_India

14. • Today 97.6% of the Indian households have been electrified.
• The availability of power in rural areas has increased from 12 hours in 2015 to
20.6 hours and in the urban areas it has increased up to 23.8 hours.
• Power quality is drawing increasing attention due to the heavy penetration of
power electronics-based loads in every walk of our lives.
• Power quality parameters like frequency, voltage quality (interruptions,
variations, unbalances, flicker, sags, and swells), harmonics and power factor
are key matrices/indicators for defining a good power quality environment.
• Poor quality of power lead to premature failure or reduced/degraded
performance of equipment. It also caused increased system losses.

15. Improving electricity access in rural areas, especially in a
country like India, is a crucial and ongoing challenge.
Numerous projects and NGOs are working towards addressing
this issue.
Here are some projects and organizations involved in
improving electricity in rural areas, particularly in India:

16. Empowering Rural India: The Role of Tehri Dam in Electrification
The Tehri Dam is a multi-
purpose dam situated in
the Tehri Garhwal district
in Uttarakhand, India.
It is the tallest dam in
India and provides water
to generate electricity,
irrigation and municipal
water supply.
This multi-purpose rock
and earth-fill embankment
dam is the tallest dam in
the country
The dam was built in
2006 for providing water
to generate electricity,
irrigation as well as
municipal water supply.
The sediment trap efficiency of the dam is 95%. It was
designed in a manner to make it capable of offsetting 150 years
of sedimentation
Standing tall as one of the highest dams in Asia, the Tehri
Dam is a multi-purpose dam with a reservoir that generates
around 1,000 MW of hydroelectricity.

17. Features of Tehri Dam
Tehri Dam is about 855 ft high
(260.5 m) with a length of 1,886 ft
(575 m), crest width of 66 ft (20 m)
and base width of 3,071 ft (1,128 m)
1,000 MW is the installed hydro capacity
of the dam. In addition, there is an
additional 1,000 MW of pumped-storage
hydroelectricity
The dam helps in distributing power to the
states of Uttarakhand, Rajasthan,
Punjab, Haryana, Uttar Pradesh,
Jammu & Kashmir, Himachal Pradesh
and Chandigarh
The project was first given to Uttar Pradesh’s
Irrigation Department. But, the Tehri Hydro
Development Corporation was established for
managing the dam in 1988.
The funding’s responsibility was 75% of the federal government and 25% of the
state. It was decided that Uttar Pradesh will be responsible for financing the
project’s whole irrigation portion.

18. 12% power generated by the hydroelectric
project is being provided free to the state of
Uttarakhand. About 2.7 lakh hectares of new
area is being irrigated and an efficacious way
of flood moderation during the monsoon
season is being achieved through the storage
of excess water in the dam .
2400 MW of electrical power that has led to
industrial development in the northern region.
Electricity Surge

19. WHY WE NEED TEHRI DAM ?
Uttarakhand, being a hilly state, presented
geographical constraints for conventional
means of water resource management.
One of the primary objectives of the Tehri
Dam was to generate hydroelectric power.
With an installed capacity of 1,000
megawatts, the dam significantly
contributes to India’s energy requirements.
The potential for further expansion of
power generation exists, making the Tehri
Dam a vital asset for the nation’s
sustainable energy future.
Demand for electricity
Irrigation
Drinking Water

20. CHALLENGES AND CONTROVERSIES
The relocation of more than 100,000 people
from the area has led to protracted legal
battles over resettlement rights and,
ultimately, resulted in the project's delayed
completion.
On 21 November 2019, the Government of
India approved the take over of Tehri Hydro
Development Corporation (THDC) by NTPC
Limited.
"We don't want the dam. The dam is the mountain's destruction."

21. FUTURE PROSPECTS AND EXPANSION
Looking ahead, the Tehri Dam presents opportunities for further expansion and
improvement.
Plans are underway to increase the hydroelectric capacity, harnessing more clean
energy from the flowing rivers.
Additionally, initiatives to enhance tourism infrastructure and promote sustainable
development are being considered, ensuring the holistic growth of the region
To Increase the
hydroelectricity
To Promote the
Sustainable
Development
To Increase
Tourism

22. MLINDA
Mlinda is working in rural India to introduce
environmentally sustainable and affordable mini-
grids
Mlinda had installed 39 such grids in 40 villages
by March 2020 and is on track to reach 49 grids
in 50 villages by March 2021.
The villages experience positive environmental,
social and financial outcomes such as a reduction
in CO2 emissions and increased household
incomes. Women spend less time on domestic
chores and children study longer under healthier
lighting.

23. Evolution of Mlinda's Renewable Energy Based Rural Electrification Project (youtube.com)

24. MLINDA PROJECT – FOR RURAL COMMUNITIES
ENERGY
Energy production makes up 70% of global
greenhouse gas (GHG) emissions. Coal, gas and
oil, used for transport, utilities and industry are
the biggest contributors.
INDUSTRY
Setting aside the energy needed to power
them, industrial processes contribute close to
7% of global GHG emissions – primarily
connected to processes involving cement,
chemicals and aluminium.

25. MLINDA
PROJECTS &
PARTNERS
PROVIDE
ELECTRICITY
IN RURAL
AREAS

26. The Rockefeller Foundation - Smart Power for Rural
Development (SPRD):
ABOUT
The Rockefeller Foundation will launch Smart Power for Rural Development to
promote sustainable business models that deliver renewable electricity and
spur economic development among poor, underserved rural populations.
The initiative will focus on India, where the Foundation is establishing a new
organization that will partner with energy service companies (ESCOs), telecom
tower operators, investors, non-governmental organizations (NGOs), and
government agencies to electrify 1,000 villages in the next three years (2014-2017).

27. CHALLENGES
Around the world, approximately 1.3 billion people
lack access to reliable, affordable means of electricity,
without which households in poor communities are
limited in their ability to enhance their incomes,
improve food security, educate their children, access
key information services, and maintain good health.
The problem is particularly serious in India, where
despite great efforts and huge sums of money spent
towards expanding the national grid, more than 300
million people, mostly in rural areas, lack access to
electricity.

28. DATA, FACTS & FIGURES
Four out of top five
states: Increase in
rural electrification
rate accompanied by
apparent decline in
total households

29. Only six states reported 24 hours of average power supply in a day in rural areas
GUJARAT
MAHARASTRA
PUNJAB
TAMIL NADU
TELANGANA
WEST BENGAL
Source :- The Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY) website says the data as on Feb 28, 2017 is as per GARV, while the
data as on 31 Dec 2017 is as per the Letter of Intent submitted by state governments, or as per data validated by states. Saubhagya data is
as per data validation/ reporting by statistics

30. • The Rural Electrification schemes could
be made attractive with proper selection
of the renewable energy source/ hybrid
system.
• Grid connected RE based generation
scheme could help improving quality of
supply & benefit the locality.
• Involvement in Local Community for
the development of the project.
• The encouragement / financial support
essential for sustainablilty & attracting
private investment in the sector.
Conclusion

31. Sources
Which factors affect the power supply quality? | Electrical India Magazine
Quality of electricity supply is also importantmena - Search (bing.com)
Rural Electrification: An overview |ForumIAS
Ministry of Power , Government of India
Niti Aayog Report 2021-22
REC LIMITED (Formerly Rural Electrification Corporation Limited) (recindia.nic.in)
pib.gov.in/PressReleaseIframePage.aspx?PRID=1896139
Our Approach - Selco Foundation
Gram Power Infrastructure Pvt. Ltd.
Lighting a Billion Lives - Energy Access : Energy Poverty (teriin.org)
Smart Power for Rural Development: Overview (rockefellerfoundation.org)

32. Thanks
Presented By :-
Sachin Pratap Singh
Aditya Mishra
Samarth Bajpai
Utkarsh Gupta
Abhijeet Gupta