PM Modi’s ‘Saubhagya’ Scheme: Whose Fortunes Will It Brighten?

PM Modi’s ‘Saubhagya’ Scheme: Whose Fortunes Will It Brighten?

Prime Minister Narendra Modi, while addressing a gathering recently, stressed on “Power for All” by illustrating a very interesting fact that despite the fact that light bulb was invented by Thomas Edison, more than 125 years ago, it is unfortunate that more than 40 million households are without power.

The government intends to electrify all the villages by the end of December 2018 with the total investment outlay of Rs 16,320 crore. The industry estimates suggest that implementation of ‘Saubhagya’, the newly launched scheme to electrify all villages, could lead to an additional demand for 25,000 MW of power, which is about 7 percent of India’s current installed power capacity of 3,29,000 MW.

Will the generation companies gain?

While this is slightly positive for generation companies, the real issue that experts highlight is that even if the connectivity is provided, will Discoms supply power and how will they collect money? Read More…

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