Modi Cabinet clears four major power sector schemes
Moneylife Digital Team 21 November 2014
The Deen Dayal Upadhyaya Gram Jyoti Yojana and Integrated Power Development Scheme aim to strengthen sub-transmission and distribution network in urban and rural areas
 
The Union Cabinet has approved four significant decisions for the power sector — Deen Dayal Upadhyaya Gram Jyoti Yojana, Integrated Power Development Scheme, North Eastern Region Power System Improvement Project, and a framework agreement for energy cooperation among SAARC members.
 
The Integrated Power Development Scheme (IPDS) is for the urban areas and entails an investment of Rs32,612 crore. The programme requires a budgetary support of Rs25,354 crore for the entire duration. The earlier scheme, Restructured Accelerated Power Development and Reforms for 12th and 13th Plans will get subsumed in this new scheme. IPDS would help in reduction in AT&C losses, establishment of IT enabled energy accounting,  auditing system, improvement in billed energy based on metered consumption and improvement in collection efficiency. 
 
The Deen Dayal project is for the rural areas. The full scheme entails an investment of Rs43,033 crore, but for 2014-15 the Government has allocated Rs500 crore. “The programme requires budgetary support of Rs33,453 crore from the Government over the entire implementation period,” the statement said.
 
The Cabinet Committee on Economic Affairs (CCEA) has already approved the Rs39,275 crore for the scheme, which includes budgetary support of Rs35,447 crore under the earlier scheme — Rajiv Gandhi Gram Vidyutikaran Yojana. This outlay will be carried forward to the new scheme in addition to the outlay of Rs43,033 crore, the statement said.
 
According to an official statement, the North Eastern Project is to strengthen the intra-State transmission and distribution system for Rs5,111 crore, including capacity-building expenditure of Rs89 crore. The scheme is to be implemented with World Bank and Power Ministry assistance.
 
The Cabinet also approved a framework agreement among SAARC member-states during the forthcoming SAARC Summit in Kathmandu on 26-27th November.
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