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F. No. 44/44/2014-RE
Ministry of Power Govt. of India
Shram Shakti Bhawan, Rafi Marg, New Delhi dated 3rd December, 2014
OFFICE MEMORANDUM
Subject: "Deendayal Upadhyaya Gram Jyoti Yojana" (DDUGJY)
Sanction of the President is conveyed for launch/implementation of "Deendayal Upadhyaya Gram Jyoti Yojana" (DDUGJY) with the following components :
(i) Separation of agriculture and non-agriculture feeders facilitating judicious rostering of supply to agricultural & non- agricultural consumers in the rural areas; and
(ii) Strengthening and augmentation of sub-transmission & distribution infrastructure in rural areas, including metering of distribution transformers/feeders/consumers
(iii) Rural electrification, as per CCEA approval dated 01.08.2013 for completion of the targets laid down under RGGVY for 12th and 13th Plans by carrying forward the approved outlay for RGGVY to DDUGJY.
2. The components at (i) and (ii) of the above scheme will have an estimated outlay of Rs. 43033 crore including a budgetary support of Rs. 33453 crore from Government of India during the entire implementation period. Details are given in Annexure-1.
3. The scheme of RGGVY as approved by CCEA for continuation in 12th and 13th Plans will get subsumed in this scheme as a separate rural electrification component [component (iii) above] for which CCEA has already approved the scheme cost of Rs. 39275 crore including a budgetary support of Rs. 35447 crore. This outlay will be carried
forwar·d to the new scheme of DDUGJY in addition to the outlay
indicated in para 2 above.
4. Scope of works
The scheme will cover works relating to feeder separation, strengthening of sub-transmission & distribution systems including metering of distribution transformers/feeders/consumers and rural electrification. The details are given at Annexure-11.
5. Eligible Utilities
All Discerns including private sector Discerns and State Power Departments will be eligible for financial assistance under· the scheme. In case of private sector Discerns where the distribution of power supply in rural areas is with them, projects under the scheme will be implemented through a State"Government Agency and the assets to be created under the scheme will be owned by the State Government / State owned companies . These a sets will be handed over to the concerned Discern for their use during the license period on mutually agreed terms & conditions. The responsibility of operation and maintenance of these assets would be of the concerned Discom.
6. Formulation of DPR and Project Appraisal Mechanism
The Discerns will prioritize strengthening of rural infrastructural works considering specific network requirement and will formulate bankable Detailed Project Reports (DPRs) of the projects for coverage under the scheme. The DPRs will be recommended by existing State Level Standing Committee (SLSC) constituted for RGGVY programme· under the chairmanship of Chief Secretary (scope of Committee shall be extended to cover Deendayal Upadhyaya Gram Jyoti Yojana) before submission to the Nodal Agency. The SLSC will ensure that there is no duplication of works while recommending the projects to the Nodal Agency. Rural Electrification Corporation Limited (REC) shall be the Nodal Agency for operationalization of the scheme. The Nodal Agency will be paid 0.5% of the total project cost as their fee. The projects shall be appraised and duly recommended by the Nodal Agency for approval of the Monitoring Committee chaired by Secretary (Power), Ministry of Power, Govt of India.
7. Monitoring Committee
The projects will be placed for approval by the Monitoring Committee under the chairmanship of Secretary (Power). The Committee will consist of representatives from Ministry of Power, Ministry of Finance, Ministry of Rural Development, Ministry of Agriculture, Ministry of New & Renewable Energy, Central Electricity Authority (CEA) and Planning Commission. Chairman & Managing Director, REC will be the Member Secretary & Convener of the Committee. The Committee will. be empowered to approve operational guidelines to be. prepared by the Nodal Agency for implementation of the scheme and amend these guidelines (including the scope of work in Annexure-11) from time to time within th · overall approval granted by CCEA. The Committee will also monitor. implementation of the scheme.
8. Tripartite/ Bipartite agreement
Suitable Tripartite agreement will be executed between REC as the Nodal Agency on behalf of Ministry of Power , the State Government and the Discern to ensure implementation of the scheme in accordance with the guidelines prescribed under the scheme. Bipartite agreement will be executed in case of State Power departments.
9. Project Management Agency (PMA) .
An appropriate Project Management Agency (PMA) will be appointed by the utility for monitoring and ensuring timely implementation of the project. 100% grant will be provided by Gal towards expenditure incurred on Project Management Agency (PMA) as per provision in the scheme (0.5% of cost of works).
10. Execution Period
Projects under the scheme will be completed within a period of 24 months from the date of issue of Letter of Award (LoA) by the utility. In case the Discoms I Power Departments are not able to complete the projects within stipulated time period due to circumstances beyond their control, the Monitoring Committee will be authorized to grant time extension based on merits in exceptional cases on a case to case basis.
11. Supporting/ Enabling activities of Ministry of Power
A provision of 0.5% of the total project cost has been kept for· the supporting/ enabling activities of Ministry of Power relating to implementation of the scheme, such as capacity building, creating· awareness, monitoring, field inspections, evaluation studies, training etc.
12. Funding Mechanism
The funding mechanism will be as under:
Agency | | | Nature of support | Quantum of support (Percentage of project cost) |
Other than Special Category States | Special Category States# |
Govt of India | | Grant | 60 | 85 |
Discern Contribution* | Own Fund | 10 | 5 |
Lender (Fis/ Banks) | Loan | 30 | 10 |
Additional Grant from GOI on achievement of prescribed milestones | Grant | 50% of total loan component (30%) i.e. 15% | 50% of total loan component (10%) i.e. 5% |
Maximum Grant by GOI (including additional grant on achievement of prescribed milestones) | Grant | 75% | 90% |
# Special Category States (All North Eastern States including Sikkim, J&K, Himachal Pradesh , Uttarakhand) ·
* Minimum contribution by Discom(s) is 10% (5% in case of Special Category States). However, Discom(s) contribution can go up to 40% (15% in case of Special Category States), if they do not intend to avail loan. In case, the Discom(s) do not avail loan, the maximum eligible additional grant would be 15% (5% in case of Special Category States) on achievement of prescribed milestones. The loan component would be provided by REC or by other Fls/Banks.
Note: 100% grant shall be provided by Gol towards expenditure incurred on activities for bridging the missing links of National Optical Fibre Network (NOFN), Creation of Rural Electrification Data Hub at Rural Electrification Corporation & Project Management Agency (PMA) as per provision in the scheme.
13. Release of funds by Gol:
The grant support from Gol is proposed to be extended as per following milestones:
Tranche no. | Conditions for release of grant support by Gol | Release of Grant component of GOI |
1 | (i) Approval of projects by Monitoring Committee (ii) Bipartite I Tripartite agreemer:1t amongst Discerns, State Govt & Nodal Agency on behalf of MoP. | 10% |
2 | Placement of Letter of Award (LoA) by the utility | 20% |
3 | Utilisation of 90% of grant released by GOI (1st and 2nd Tranche) and 100% release of Discom contribution | 60% |
4 | After completion of works | 10% |
14. Milestones for release of additional grant (50% of loan component i.e. 5% for special category States and 15% for other States)
Additional grant (i.e. conversion of 50% of loan component) under the scheme will be released subject to achievement of following milestones :
(a) Timely completion of the scheme as per laid down milestones
(b) Reduction in AT&C losses as per trajectory finalized by MOP in consultation with State Governments (Discorn-wise)
(c) Upfront release of admissible revenue subsidy by State Govt. based on metered consumption
15. Implementation of rural electrification component of the scheme
All ongoing projects under this component of the scheme will be implemented as per CCEA approval dated 01.08.2013 and the commitment made/targets fixed under RGGVY will be completed by carrying forward the approved outlay of RGGVY to DDUGJY. A copy of Office Memorandum issued by Ministry of Power conveying the approval of CCEA is enclosed at Annexure-111.
16. The expenditure involved on above scheme would be debitable to approved budget grant No. 2801.05.800.06.00.35 of Ministry of Power for the year 2014-15 and the relevant budget head for the subsequent years.-
17. The scope of work items listed in Annexure-11 of this sanction shall be eligible under the scheme provided the proposed scope of works is not covered under any Gol program like R-APDRP/ RGGVY / NEF etc. The projects for which any other grant / subsidy from Government of India has already been received I proposed to be received shall not be eligible under this scheme. State Level Standing Committee (SLSC) under the chairmanship of Chief Secretary shall ensure that there is no duplication of works while recommending the projects to the Nodal Agency.
18. The Nodal Agency will furnish monthly progress reports on the implementation of the scheme indicating both financial and physical progress to Ministry of Power and CEA
19. Detailed guidelines for the implementation of the scheme will be issued separately.
20. This issues with the concurrence of Finance Wing vide their diary No. 190/Fin./14 dated the 01.12.2014.
.
(B .N.Sharma) Joint Secretary to the Government of India
To
- Chief Secretaries of all States
- Secretary (Power/Energy) of all States
- Chairman of all State Utilities
- Chairman & Managing Director, REC, SCOPE Complex, New Delhi.
- Cabinet Secretariat.
- Prime Minister's Office.
- Controlier of Accounts, Ministry of Power.
- Controller of Accounts, Pay & Accounts Office
- Principal Directorate of Audit, Economic & Service Ministries , I.P. Estate, New Delhi. ·
- Secretary, Planning Commission, New Delhi.
- Secretary, Department of Expenditure, Ministry of Finance, New Delhi. ,
- Chairman, Central Electricity Authority, Sewa Bhawan, R.K.Puram, New Delhi.
Copy to:
PPS to Secretary/PPS to SS(RNC)/PS to JS(RE)/PS to JS&FA, Ministry of Power.
0 Annexure-1
COST ESTIMATE
(Other than Rural Electrification Component)
(Rs. in crore)
S.No. | Proposed Works | Amount | A | Item of works proposed for partial fundinA bv GOI | | 1 | Feeder Separation/ New Feeders (16500 Nos. feeders and associated works) | 24,750 | 2 | 33 KV/66 KV Line (21900 Ckm) | 1,515 | 3 | Sub-station Works - 33 KV or 66 KV (1620 new sub-station, augmentation of 1615 existing sub-station) | 4,045 | 4 | LT Infrastructure works {LT lines with bare conductor/Arial Bunched cables & Di stribution Transformers) | 5,350 | 5 | Metering at Feeders, Distribution Transformers & Consumers end | 6,450 | | Sub-Total (A) | 42,110 | B | Item of works proposed for 100% fundina bv GOI | | | | 7 | Establishing Missing link of Optic fibre (Upto Sub Stations under National Optic Fibre Network-NOFN) | 280 | 8 | Creation of Rural Electrification Data Hub at Rural Electrification Corooration | 10 | 9 | Project Management Agency (PMA) @ 0.5% of total cost of works (0 .5% of A] | 211 | | Sub-Total (B) | 501 | | Total Project Cost (A+B) | 42,611 | C | Fee of Noda Agency and provision for enabling activities for Ministry of Power | | 10 | REC fee @0.50 % of total cost of works (A) | 211 | 11 | Provision for MoP for enablinq activities @O.50 % of total cost of works (A) | 211 | | Sub-Total (C) | | 422 | | Grand Total (A+B+C) | 43033 | | | | | | | |
|
|
ESTIMATE FOR GBS REQUIREMENT (Other than Rural Electrification Component)
(Rs. Crore)
SI.No. | Particulars | Other than Special Category States | Special Category States | Total |
1 | Total Cost of Works proposed for partial funding by GOI | 35793.50 | 6316.50 | 42110.00 |
2 | Percentage of project cost proposed to be shared by Gol as Grant (including additional grant on timely completion) | 75% | 90% | - |
3 | Grant Component for works proposed for partial fundin.g .by GOI | 2684 5.13 | 5684.85 | 32529.98 |
4 | Total Cost of Works proposed for 100% funding by GOI | 501.00 | 501.00 |
5 ! | Fee of Nodal Agency and provision for enabling activities for Ministry of Power | 422.00 | 422.00 |
| Total GBS Requirement (3+4+5) | - | 33452.98 say 33453 |
YEAR-WISE PHASING OF BUDGETARY SUPPORT
(Other than Rural Electrification Component)
Year | Grant | 2014-15 | 500 | 2015-16 | 3500 | 2016-17 | 6500 | Sub-Total (12th Plan) | 10500 | 2017-18 | 8500 | 2018-19 | 7500 | 2019-20 | 2500 | 2020-21 | 2000 | 2021-22 | 2453 | Sub-Total (13th Plan) | 22953 | Grand Total | 33453 |
|
|
(Rs.. Crore)_
Annexure-11
Scope of works
- Feeder Separation
(i) Physical separation of HT feeders for Agricultural and non-Agricultural consumers
(a) Erection of HT lines for drawing new feeders and reorientation/re alignment of existing lines
(b) Installation of new distribution transformers and augmentation of existing distribution transformers
(c) Re-location of distribution transformers and associated LT lines for re grouping of consumers (Agricultural and Non-Agricultural)
(ii) Virtual separation of feeders
(a) Installation of new distribution transformers and augmentation of existing distribution transformers
(b) Re-location of distribution transformers and associated LT lines for re grouping of consumers (Agricultural and Non-Agricultural)
(c) Installation of rotary switch and associated hardware at sub-stations Feeders already segregated by the States Discoms / Power Deptt. shall not be eligible to be covered under this scheme. However, the feeders already segregated by virtual means could be considered for undertaking physical separation under the scheme.
- Strengthening of sub-transmission and distribution system in rural areas to address critical gaps
The following works shall be eligible to be covered under the scheme based on study/assessment carried by the respective State Discerns/ Power Deptt. for identifying critical gaps in sub-transmission and distribution network considering all relevant parameters (such as voltage regulation, HT & LT ratio;· op!ir:num loading of transformers & lines, reactive power management, power fador improvement, standard of performance, ongoing works under other schemes etc.) :
(i) Cr ation of new sub stations along with associated 66 KV/ 33 KV/ 22 KV/ 11 KV lines.
(ii) Augmentation of existing sub-stations capacity by installation of higher capacity/additional power transformer along with associated equipment/ switchgear etc.
(iii) Erection of HT lines for reorientation/re-alignment including augmentation of existing lines
(iv) Installation of new distribution transformers and augmentation of existing
- di tribution transformers along with associated LT lines
(v) Installation of capacitors
(vi) Renovation and Mo.dem izati on. of existing sub-stations and lines (vii)High Voltage Distribution System (HVDS)
., (viii) Arial Bunched Cable for theft prone areas
- Metering
(i) Installation of suitable static meters for feeders, distribution transformers and all categories of consumers for existing un-metered connections, replacementof faulty meters & electro-mechanical meters.
(iiJlnstallation of Pillar Box for relocation of meters outside the premises of consumers including associated cables and accessories
- Rural electrification component as per ongoing RGGVY scheme in accordance with CCEA approval dated 01.08.201'3 for continuation of scheme in 12th and 13th Plan and applicable guidelines
- Completion of optical fibre missing links to connect all the 33 KV or 66 KV grid sub stations under _the establishment of National Optical Fibre Network (NOFN)
- Creation of rural electrification data hub at REC
- Provisioning of micro-grid and off-grid distribution network
Above works shall be eligible under the scheme provided the proposed scope of works is not covered under any Gol program like R-APDRP/ RGGVY / NEF etc. The projects for which any other grant I subsidy from Government of India has already been received / proposed to be received shall not be eligible under this scheme. State Level Standing Committee (SLSC) under the chairmanship of Chief Secretary shall ensure that there is no duplication of works while recommending the projects to the Nodal Agency.
List of items not eligible to be covered under the scheme
- Works already covered under other schemes of Govt. of India
- Service lines to-consumer (except rural electrification component) Under-ground cable works-
- Cost of land for sub-stations .
- Civil works other than sub-stations .
- Compensation towards right of wayDistribution automation and IT applications
- Office equipment / fixtures·
- Spares (Other than mandatory spares prescribed by the Manufacturer)
- Tools and Plants (T&P) 11.Vehicles
- AMR I AMI, Prepaid meters and Smart Meters
- Salaries and Establishment-Expenditure