Pradhan Mantri Sahaj Bijli Har Ghar Yojana

Saubhagya Scheme: Features, Benefits, and Challenges

  • Prime Minister Narendra Modi on 25 September 2017 launched the Pradhan Mantri Sahaj Bijli Har Ghar Yojana.which is alternatively known as -“Saubhagya”.
  • The mandate of the scheme is to achieve universal household electrification in the country by the end of 2018. The scheme will benefit over 3 crore households across the length and breadth of the country.
  • It is against this backdrop, it is pertinent to know the key features of the Saubhagya Scheme and its benefits to the society and the challenges in its implementation

Key features of the Saubhagya Scheme are - 

Objective: 

The objective of the ‘Saubhagya’ is to provide energy access to all by last mile connectivity and electricity connections to all remaining un-electrified households in rural as well as urban areas of the country

Goal: 

To provide universal access to power by December 2018. The scheme will be executed at a cost of Rs 16,320 crores.

Beneficiaries: 

  • While poorer households would be provided electricity connections free of cost as part of the scheme, other households would also be provided electricity connections under the scheme on payment of Rs.500. The amount is recovered by the DISCOMs/Power Departments in ten 10 installments along with electricity bills.
  • The electricity connection to households includes the release of electricity connections by drawing a service cable from the nearest electricity pole to the household premise, installation of energy meter, wiring for a single light point with LED bulb and a mobile charging point.
  • For households located in remote and inaccessible areas, solar power packs of 200 to 300 Watt and battery back with 5 LED light, 1 DC Fan, 1 DC power plug along with repair and maintenance for 5 years would be provided.

Convergence with other schemes: 

  • While the 24x7 Power for All is a joint initiative of the Union and State governments to prepare a roadmap and action plan to ensure 24x7 power for all, Saubhagya is a schematic support to address the issue of energy access.
  • The saubhagya scheme was taken up by realizing the fact that providing connectivity to all households is a prerequisite to ensure 24x7 power supply.
  • Similarly, the Saubhayga scheme helps in comprehensively addressing the issues of entry barrier, last mile connectivity and release of electricity connections under the  Deendayal Upadhyaya Gram Jyoti Yojana (DDUGJY) and Integrated Power Development Scheme (IPDS).
  • It should be noted that DDUGHY envisages the creation of basic electricity infrastructure in villages/habitations, strengthening & augmentation of existing infrastructure, metering of existing feeders/distribution transformers/consumers to improve quality and reliability of power supply in rural areas, the IPDS provides for creation of necessary infrastructure to provide electricity in urban areas.

Budget: Rs. 16,320 crore allocated for the Pradhan Mantri Sahaj Bijli Har Ghar Yojana

Benefits of Saubhagya:

  • Access to electricity would substitute the use of Kerosene for lighting purposes, resulting in a reduction in indoor pollution thereby saving people from health hazards.
  • Electricity access would help in establishing efficient and modern health services in all parts of the country.
  •  Lighting after the sunset also provides a sense of enhanced personal safety, especially for women, and increase in post-sunset social as well as economic activities
  • Availability of electricity will boost education services across all areas and quality lighting post-sunset would facilitate children to spend more time on studies and move ahead further in prospective careers. Household electrification also increases the likelihood that women would study and earn income
  • Substitution of use of Kerosene with electricity for lighting purposes would reduce annual subsidy on Kerosene and would also help reduce the import of petroleum products
  • Electricity in each home would provide improved access to all kinds of communications like Radio, Television, Internet, mobile, etc. through which everyone would be able to access all kinds of important information available through these communication mediums
  • Farmers can access information about new and improved agriculture techniques, agro-machinery, quality seeds, etc. resulting in a significant increase in agricultural production and consequently increase in income. Farmers and youths can also explore the possibilities of setting up agro-based small industries.
  • Implementation of the scheme itself would result in employment generation in view of the requirement of semi-skilled / skilled manpower for execution of works of household electrification. About 1000 lakh man-days works would be generated for implementation of the scheme

Challenges in implementation

  • The federal government is paying for connections, but the purpose will be defeated if the states fail to supply reliable power to people.
  • Even if all rural households get power, making adequate returns on their investment will be a challenge for retailers given the low-usage pattern.
  • Poor cost recovery can result in poor maintenance and thus huge investments in network infrastructure can go waste
  • Regular metering, billing and collection from power consumers besides the stringent timeline.
  • Implementation capacity at the local level for enrolling new consumers will be a challenge.

Problems faced by Discoms 

  • Selling electricity below cost has eroded discoms’ ability to invest in infrastructure, buy enough power from generators and repay bank debts. 
  •  Power generation plants operate at just about half their capacity, unable to sell all the power they can produce. 

Way Forward

  • Operational autonomy of the distribution companies and timely payment of subsidies.
  • Equal emphasis must be on actual hours of electricity supply for getting the true benefits of electrification.
  • Need for infrastructure and financial support from the states.

Conclusion

Access to electricity definitely has a positive impact on quality of life of people in all aspects of daily household chores and human development. The Saubhagya Scheme is a significant initiative since it touches various aspects of human life – employment, health, education, and education. Its successful implementation is key to building smart villages, achieving energy security and improving the lives of people living in remote and inaccessible areas.

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