MoP - Ministry of Power

(k) Revenue Sustainability
Based on the consumer mix and the prevailing
consumer tariff and likely load, the Bulk Supply Tariff
(BST) for the franchisee would be determined after
ensuring commercial viability of the franchisee.
Wherever feasible, bidding may be attempted for
determining the BST. This Bulk Supply Tariff would
be fully factored into the submissions of the State
Utilities to the State Electricity Regulatory
Commissions (SERCs) for their revenue
requirements and tariff determination. The State
Government under the Electricity Act is required to
provide the requisite revenue subsidies to the State
Utilities if it would like tariff for any category of
consumers to be lower that the tariff determined
by the SERC. While administering the scheme, prior
commitments may be taken from the State
Government regarding -
a. Determination of bulk supply tariff for
franchisees in a manner that ensures their
commercial viability.
b. Provision of requisite revenue subsidy by the
State Government to the State Utilities as
required under the Electricity Act.
(l) The services of Central Public Sector Undertakings
(CPSUs) have been offered to the states for
assisting them in the execution of Rural
Electrification Projects as per their willingness and
requirement. With a view to augment the
implementation capacities for the programme, REC
has entered into Memorandum of Understanding
A view of an electrified village street
(MOUs) with NTPC, POWERGRlD, NHPC and
DVC to make available CPSUs' project
management expertise and capabilities to states
wishing to use their services. This is being
operationalised through a suitable Tripartite/
Quadrupartite Agreement.
5.2 Progress upto 25.01.2008
The details of progress in respect of implementation of the
projects under Rajiv Gandhi Grameen Vidyutikaran Yojana
(RGGVY) are as under:
5.2.1. Village and Household Electrification
Under the scheme electrification works in 10,169 villages in
2005-06 (including electrification of 350 villages) and 40,233
villages (including intensive electrification of 11527 electrified
villages) in 2006-07 were completed. During the year
2007-08, works have been completed for 20287 villages
(including intensification of 13210 electrified villages) as
on 25.01.2008. Cumulatively, works in 70689 villages have
been completed under RGGVY.
Cumulatively, connections to 22.87 Lakh rural households
including 18.76 Lakh BPL households have been released
under the scheme as on 25.01.2008.
The state-wise details are enclosed at Annexure – I
5.2.2. Franchisee development
Fourteen states in the country have taken action so far for
deployment of franchisees in rural areas. These are mainly
revenue collection based franchisees. So far, 8039
franchisees are operational covering 73422 villages both
in RGGVY and non-RGGVY villages in the states of West
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