RGGVY Scheme


In order to attain National Common Minimum Programme (NCMP) goal of providing access to electricity to all rural households and electrification of all villages. Government of India, in April, 2005 conceived “Rajiv Gandhi Grameen Vidyutikaran Yojana” (RGGVY) to electrify all un-electrified villages / habitations and to provide access to electricity to all rural households in un-electrified and electrified villages in the entire country. The scheme covers electrification of all the villages in the country except the villages under the programme of Ministry of Non-conventional Sources (MNES) for providing electricity from non-conventional energy sources under their remote village electrification programme. With the launch of this scheme the existing “Accelerated Electrification of One lakh Villages and One Crore Households" and the Minimum Needs Programme for rural electrification got merged with RGGVY. The scheme is being implemented through the Rural Electrification Corporation (REC) which has been designated as Nodal Agency by Ministry of Power.


The scheme has the following important features:

  • Ninety per cent capital subsidy is provided towards overall cost of the projects under the scheme. 10% of the project cost is contributed by States through own resources / loan from financial institutions.
  • Prior commitment of the States has been obtained before sanction of projects under the scheme for: A. Guarantee by State Government for a minimum daily supply of 6- 8 hours.
  • Free of cost service connection to all families Below Poverty Lines


Rural Electricity Distribution Backbone (REDB)

  • Creation of REDB with atleast one 33/11 kV (or 66/11 kV) sub-station in each block. New 33/11 KV sub-station, augmentation of existing 33/11 KV sub-station, construction and augmentation of 33/11 KV lines required for catering to RGGVY loads.

Village Electrification Infrastructure (VEI)

  • Creation of VEI with at least one distribution transformer in each village / habitation. It also consists of LT Lines / LT AB Cables

Household connections

  • Free of cost service connection to all families Below Poverty Lines

Decentralized distribution-cum-generation (DDG)

  • Creation of DDG systems in villages where grid supply is not feasible or not cost effective from conventional or renewable resource. The funding is on same pattern of 90% subsidy from Government of India and 10% loan from REC or from own funds of the State. 90% capital subsidy also includes cost of operation for 5 years.


The projects sanctioned under XI Plan are subjected to 3-Tier Quality Monitoring Mechanism. The details are as under:

First Tier

  • Project implementing agency (PIA) is responsible for the first tier of the Quality Control Mechanism. This inspection will cover 50% of villages on random sample basis for each project.

Second Tier

  • Rural Electrification Corporation (REC) will get the inspection done of the works/ materials through independent agencies. These agencies are designated as REC Quality Monitors (RQM). The inspection will cover quality checks at pre-shipment stage at the vendors’ outlet of major materials and 10% villages on random sample basis. Ministry of Power has recently modified these guidelines to increase the number of villages to be inspected from 10% to 20% including all BPLs in these villages applicable for Phase-II projects (72 projects).

Third Tier

  • Independent Agencies have been engaged by the Ministry of Power for inspection of supply and erection under the programme at 3rd Tier on random sample basis. These agencies are designated as National Quality Monitors (NQM). NQMs will inspect 1% of villages. On behalf of Ministry of Power, REC coordinates 3rd Tier of Quality Monitors.


The scheme is periodically monitored for sanctions, implementation, energisation and socio-economic impact etc. at different level, briefly enumerated below:

  • Government of India has set up an inter-Ministerial Monitoring Committee headed by Secretary (Power), Government of India, which periodically meets to sanction projects and review progress of implementation.
  • Ministry of Power and REC regularly monitor the execution of RGGVY in detail centrally at Delhi and also conducting meeting in various States with all the stakeholders; the concerned State Governments, State Power Utilities and Implementing Agencies for expeditious implementation of the scheme as per the agreed schedule.
  • The States also hold monthly meeting under the Chairmanship of Chief Secretary to resolve the bottlenecks in implementation of RGGVY.
  • District Committees have been set up in all the States to monitor the progress of rural electrification works.
  • In addition, the State Governments and respective DISCOMs also monitor the progress of RGGVY with implementing agencies and turnkey contractors. Field officers of REC also participate in such meetings.


Government of India, Ministry of power has approved continuation of “Rajiv Gandhi Grameen Vidyutikaran Yojana” (RGGVY) in the 12th Five Year Plan. Salient features are as follows:

Coverage :-

  • Completing spillover works of projects sanctioned in X and XI Plans.
  • Continuing the scheme for covering all remaining census villages and habitations with population of above 100
  • Providing free electricity connections to BPL households in the villages and habitations covered.
  • Extending DDG to grid connected areas to supplement the availability of power in areas where power supply is less than six hours a day.

Financial Outlay :-

  • For XII Plan projects Rs. 22,598 Cr.
  • Subsidy for spillover works Rs. 12,849 Cr.
  • Total Capital Subsidy Rs. 35,447 Cr.

Funding Pattern

  • Present funding pattern (90:10) shall continue.
  • Service Charges – 5% of project cost excluding cost of BPL subsidy for implementing the scheme including Field survey & preparation of DPR, deployment of dedicated manpower & meeting the expenditure on 1st tier of the QC Mechanism.
  • BPL households will be provided free electricity connections with LED lamp at the rate of Rs. 3000 per connection.
  • Rs. 900 Cr. is earmarked for DDG Projects as subsidy which is flexible within overall allocation of RGGVY.


As per guidelines of XII Plan of RGGVY following modifications have been made

  • All remaining census villages and habitations having population more than 100 have been covered under XII Plan.
  • Load has been increased from 40-60watt to 250 watt for BPL connections.
  • Grant to State Agency to release free service connections to BPL households has bee increased from Rs. 2200 to Rs. 3000 with LED Bulb.
  • Franchisee shall not be mandatory (for ongoing and new projects). However, States should mention the alternative arrangement that would be adopted by them to ensure maintenance of the assets created and revenue sustainability at the Discom level.
  • Higher Capacity Distribution Transformers of 63 & 100 KVA have been allowed depending upon load with proper justification.

Implementation Framework

  • Detailed guidelines for formulation of projects, technical specification of materials / equipments, construction standards, procurement of goods & services including standard bidding document, cluster based approach for execution of works, shall be provided by REC with the approval of Monitoring Committee (MC).
  • State Government shall identify the Implementing Agencies (IAs).
  • Services of CPSUs can be availed by states based on their willingness and mutual convenience.
  • General mode of execution - on Turn-key basis. Departmental execution - in exceptional cases with the approval of MC.
  • Online submission of DPRs, e-tendering, cluster based execution, revised fund management guideline.
  • Present system of 3-Tier Quality Control shall continue & now it has been made more stringent.
  • State Level Standing Committee (SLSC) headed by Chief Secretary – for recommending, reviewing and monitoring the projects.
  • Detailed field survey – for identifying the list of eligible villages and habitations & to arrive at actual scope/quantity. Cost overruns, if any, on account of quantity variation shall be borne by State Governments.
  • A dedicated team shall be created by PIA at district and PIA level, for project management, concurrent quality assurance, awareness creation & grievance redressal.
  • Inter-ministerial Monitoring Committee of MOP shall approve and monitor the projects.
  • Deployment of franchisees shall not be mandatory. However, States should mention the alternative arrangement that would be adopted to ensure maintenance of the assets and revenue sustainability at DISCOM level in Detailed Project Reports (DPRs).