Rural Electrification Corporation (REC) is in the process of drawing up a scheme for extending long term basis soft loans to the States at a flat rate to achieve 100% household electrification across the States for both APL (Above the Poverty Line) & BPL (Below the Poverty Line) population.
These loans will be over and above the loans that have been extended by the Centre for various ongoing RE schemes. This new additional loan by REC can be paid back by the states over 10-15 years and will be given at low interest rates, Union minister of state for power, Piyush Goyal said.
“We have reviewed the details of how to take 100% rural electrification forward….While BPL household are already being given free connections under the Deen Dayal Upadhaya Gram Jyoti Yojana (DDUGJY), we will soon come out with a scheme for electricity connections to APL households also so that the entire RE program can be taken up by the states in one go,” the minister said.
Goyal expressed confidence that 100% Rural Electrification, including villages in LWE Districts and dense forests, would be achieved by 1st May, 2017, one year ahead of schedule as set by the Prime Minister of Narendra Modi.
Further, the Minister informed that at the 2-day state power minister’s conference in Vadodara, extensive discussions were held with the states on the subject of RE.