PERFORMANCE BUDGET 1998-99 - Ministry of Power

i) Production oriented activities like minor irrigation, rural industries etc.
ii) Electrification of villages;
iii) Extension/augmentation of power system; and
iv) Small Power/Decentralised Generation for meeting the power needs of rural areas.
6.2 In the initial phase, the focus of Rural Electrification programme was on electrification of
virgin villages. This focus has gradually shifted to development of rural loads particularly
energisation of pumpsets with a view to ensuring exploitation of ground water potential for
developing minor irrigation in rural areas. The change in focus has significantly contributed to
increase in agricultural production and thereby income levels of the rural households and
creation of additional employment opportunities for the rural population. Simultaneously, in
the last few years, the focus has also been laid on integrated system improvement, small/
decentralised power generation programmes etc.
6.3 Rural Electrification programmes are formulated and executed by the State Electricity Boards
and/or Power Departments of the State Governments. The main sources of funding Rural
Electrification programme are as under :
i) Rural Electrification Corporation.
ii) Plan allocation to the States.
iii) Institutional finance including commercial banks, NABARD etc.
iv) International financing agencies like OECF etc.
6.4 Details of targets and achievements during 1997-98 under REC programme and proposals
for the year 1998-99 are given in para 11.6 under the heading ‘Rural Electrification Corporation’.
6.5 Kutir Jyoti Programme
During the fiscal year 1997-98, special thrust was given to Kutir Jyoti programme for
releasing single point light connections to the households of rural poor falling below
poverty line including Dalit and Adivasi families. The original provision of Rs.25.0
crores earmarked for Kutir Jyoti programme as grant was subsequently enhanced to
Rs.36.93 crores. The per unit grant amount for release of Kutir Jyoti connections was
fixed at Rs.1,000 for metered connection and Rs.800 for un-metered connection. With
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