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The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, today approved the launch of Deendayal Upadhyaya Gram Jyoti Yojana (DDUGJY) with components (i) to separate agriculture and non agriculture feeders facilitating judicious rostering of supply to agricultural and non-agricultural consumers in rural areas and (ii) strengthening and augmentation of sub transmission and distribution infrastructure in rural areas, including metering of distribution transformers/feeders/consumers.

The estimated cost of the scheme for above two components is Rs.43,033 crore which includes the requirement of budgetary support of Rs.33,453 crore from Government of India over the entire implementation period.

The Cabinet further approved, that the balance work relating to rural electrification as per CCEA’s approval in August, 2013 with the norms of the ongoing scheme of RGGVY in 12th and 13th Plans will get subsumed in DDUGJY as a distinct component for rural electrification, for which CCEA has already approved the scheme cost of Rs.39,275 crore including budgetary support of Rs.35,447 crore. This outlay will be carried forward to the new scheme of DDUGJY in addition to the outlay of Rs.43,033 crore.

The scheme would help in:

(i) Improvement in hours of power supply in rural areas,
(ii) Reduction in peak load,
(iii) Improvement in billed energy based on metered consumption and
(iv) Providing access to electricity to rural households.

The process of sanction of projects shall commence immediately. After sanction of projects, contracts for execution of projects will be awarded by States Discoms / Power Departments. The projects shall be completed within 24 months from date of award.

-from Press Information Bureau,Govt Of India