16th September, 2003
Ministry of Power  



Government has allocated Rs 563.87 crore in the Tenth Plan under the Accelerated Rural Electrification Programme (AREP). A scheme of Interest Subsidy under the AREP for the electrification of unelectrified villages, hamlets, dalit bastis and tribal villages. The salient features of the Scheme are : assistance under AREP will be available for electrification by conventional and non-conventional sources of energy and the interest subsidy under the Scheme is four per cent.

Interest subsidy under AREP Scheme will be provided to State Governments/Power Utilities on loan availed by it from any financial institutions like Rural Electrification Corporation, Power Finance Corporation, Rural Infrastructure Development Fund, National Agricultural Bank and Rural Development for carrying out rural electrification programmes which help to achieve national objectives of the Government for complete electrification of villages by 2007 and coverage of all households by 2012. Funds would be provided under the scheme on the basis of Net Present Value of the interest subsidies applicable on disbursement under Accelerated Rural Electrification Programme.

Besides, Government provides financial assistance to states under Pradhan Mantri Gramodaya Yojana (PMGY) and Minimum Needs Programme (MNP) for rural electrification. During the year 2002-03, an amount of Rs 363 crore and Rs 600 crore were released under PMGY and MNP respectively. In addition, Rs 98.79 crore was released as grant to states under Kutir Jyoti Programme during the year 2002-03. Under Kutir Jyoti Scheme, an allocation of Rs.100 crore has been made for the year 2003-04.