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English Release 23-July 2014
Date Month Year
  • Vice President's Secretariat
  • OFFICER TRAINEES OF INDIAN POSTAL SERVICE CALLS ON VICE PRESIDENT
  • Prime Minister's Office
  • World Bank President Jim Yong Kim meets PM
  • PM releases Biography of Sardar Vallabhbhai Patel in Braille
  • PM offers floral tributes to Bal Gangadhar Tilak
  • Department of Space
  • GSLV Project
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  • Pricing of Satellite Transponders
  • Min for Develop. of North-East Region
  • Funds for North Eastern Council
  • NGO Funding in North East
  • Priority Sectors in North East
  • Min of Civil Aviation
  • Chennai Airport Scores High in Service Quality Survey
  • Min of Commerce & Industry
  • Trade Agreement with Malaysia
  • Trade from Nathu La Border in Sikkim
  • Trade with Neighbouring Countries
  • Unctad Report on FDI
  • Roadmap to Boost Investment Between Japan and India
  • FDI in Railways
  • Promotion of Services Sector Exports
  • Financial Assistance to Madhya Pradesh for New Industrial Development Hubs
  • Strengthening of Indian Patent Office
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  • Agreement Signed with China for Setting up Chinese Industrial Parks
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  • Ticket Counters at National Monuments
  • Nomination for World Heritage Site Status
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  • Min of Earth Science
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  • Agreements with Bangladesh
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  • Min of Health and Family Welfare
  • Dr Harsh Vardhan writes to Ms. Mamata Banerjee on neo-natal deaths due to AES and JE. Offers Central support
  • “Mainstreaming” AIDS awareness to reduce HIV infection rate Health, IT Ministries forge collaboration for last push against disease
  • Min of Home Affairs
  • Nominations Invited for Padma Awards
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  • Tackling Naxal Menace in Coordinated Way
  • ST Status to Bodo People as Per Bodo Accord
  • Establishment of Disaster MGMT Institute in Andhra Pradesh
  • Inter-State Joint Force to Tackle Maoist Attack
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  • Min of Human Resource Development
  • Improving Standard of Education through Teacher Training System
  • Schemes for Assisting Research Scholars
  • Scheme for Augmenting Research and Teaching Resources of Universities in the Country
  • Inclusion of Third Gender Children for Academic Programmes
  • Revamping Mid-Day Meal Scheme
  • Enhancing Literacy Levels In the Country
  • Cancellation of Ongoing IGNOU Programmes
  • Establishment of Central Universities in the Country
  • National Achievement Surveys for Evaluating Quality of Education Imparted in Schools
  • Min of Labour & Employment
  • Funds to Women Labour Division
  • Safeguarding Interests of Labourers in Labour Intensive Manufacturing Sector
  • Housing Facilities for Tea Garden Labourers
  • Liberalisation of Labour Laws
  • Review of the Works of DGMS
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  • Criteria of Employees for Coming Under Purview of EPFO
  • Rehabilitation of Freed Child Labourers
  • Min of Micro,Small & Medium Enterprises
  • Export Targets of MSMEs
  • KVIC
  • National Awards to Entrepreneurs
  • Funds for EDP
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  • SFURTI Scheme
  • Min of Mines
  • Land Allotted to Private Parties for Mining
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  • Functioning Mines in the Country
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  • Justice Shah Commission Report on Illegal Mining
  • Mineral Production during May 2014
  • Min of Overseas Indian Affairs
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  • Pending Cases with CBI
  • Min of Petroleum & Natural Gas
  • Losses to Public Sector OMCS due to Subsidy on Oil and Gas
  • Independent Agency finalized to look into the issue of continuity of blocks of gas reservoirs
  • Steps Taken to Meet the Increasing Energy Demand
  • Global crude oil price of Indian Basket increased to US$ 105.99. per bbl on 22.07.2014
  • Min of Road Transport & Highways
  • Transparency in the PPP Framework
  • Min of Steel
  • Modernisation and Expansion of SAIL
  • Gap between Production and Demand of Iron Ore in the Country
  • Iron Ore Mining Area Allotted to VISP/SAIL
  • Ministry of Tourism
  • Revival of 'Brand India' Through Tourism
  • Safety Policy for Religious Tourist Places
  • Tourism Promotion Programmes
  • Financial Assistance to Goa for Tourism Sector
  • Tourist Destinations in Jharkhand
  • Shortage of Adequate Hotel Rooms
  • Promotion of Tourism in North-Eastern States
  • Min of Urban Development
  • Government working on the concept and contours of ‘Smart Cities’ Scheme, says Shri M.Venkaiah Naidu
  • Min of Women and Child Development
  • 400 districts already covered by the Strengthened & Resurrected ICDS Scheme
  • Shelter based schemes for women may be brought under a comprehensive Umbrella Scheme
  • Min of Youth Affairs & Sports
  • Standard of Football
  • Hockey Team Ranking
  • Issue of Indian Players Wearing Turban

Previous Date

 
Cabinet Committee on Economic Affairs (CCEA)13-December, 2011 19:56 IST
National Electricity Fund (Interest Subsidy) Scheme to subsidize interest rate on loans

The Cabinet Committee on Economic Affairs today approved setting up of the National Electricity Fund (Interest Subsidy Scheme) to provide interest subsidy etc. aggregating to Rs.8466 crore for a period of 14 years for projects of electricity distribution sector.

The scheme will become operational within a period of 6 to 12 months.

The National Electricity Fund (Interest Subsidy Scheme) is being set up to provide interest subsidy on loans to be disbursed to the Distribution Companies (DISCOMS) - both in the public and private sector, to improve the distribution network for areas not covered by Rajiv Gandhi Gramin Vidyutikaran Yojana (RGGVY) and Restructured Accelerated Power Development and Reforms Programme (R-APDRP) project areas, The preconditions for eligibility are linked to certain reform measures taken by the States and the amount of interest subsidy is linked to the progress achieved in reforms linked parameters. The nodal agency for National electricity Fund(NEF) would be Rural Electrification Corporation Ltd(REC).

In order to evacuate and distribute the power generated as a result of the ambitious capacity addition programme, commensurate investment is required in transmission and distribution sector. The DISCOMS, which handle the distribution sector, are in financial stress due to a variety of reasons. The national average Aggregate Technical and Commercial (AT&C) loss during 2007-08 was 29.24%, ranging from 13.10% to 61.59% for different DISCOMS. The Thirteenth Finance Commission had reported that the projected aggregate losses of State Transmission and Distribution Utilities at 2008 tariffs would be at Rs.1,16,089 crore by 2014-15. Thus the Central government intervention is required for revamping and restructuring the distribution sector.

The investments in distribution sector are already being undertaken under the RGGVY and R-APDRP covers towns with population of more than 30,000 (10,000 in case of Special Category States). RGGVY primarily addresses the issue of providing access of electricity to un-electrified or partially electrified villages. The scope of works and amount of investment in these schemes is not adequate to meet the entire requirement of the distribution sector. There is no scheme to cover towns with population of less than 30,000 (10,000 in case of special category States); for reduction of AT&C losses in rural areas; for augmentation of distribution networks necessitated by capacity addition; for system strengthening and upgradation; and for encouraging States to undertake agricultural and domestic feeder separation in rural areas. While it is important to channelise investments in distribution sector, it is also equally important to link these investments to reforms, as the viability of the entire power sector depends on the viability of the distribution utilities. Accordingly, the proposed scheme links interest subsidy with reforms.

There would be two categories of States for working out the interest subsidy-special category and focused states, and States other than special category and focused states. The precondition of eligibility are operationalisation of State Electricity Regulatory Commission (SERC), formulation of business plan for turn around of utilities in a times bound manner, reorganization of State Electricity Boards (SEB), release of subsidy, submission of audited annual accounts and timely filing of tariff petition. Any pre-condition of eligibility can be relaxed/modified to overcome any difficulty in operating this Scheme, with the specific approval of Steering Committee, to be chaired by Secretary(Power).

Financial implications of the National Electricity Fund would be interest subsidy aggregating Rs.8466 crore spread over 14 years for loan disbursement amounting to Rs.25,000 crore for distribution schemes sanctioned during the 2 years viz., 2012-13 and 2013-14. The outlay of' Rs.8466 crore would cover payment of interest subsidy to the borrowers, service charges to the nodal agency, payments to independent evaluators and other incidental expenses.

The implementation of the scheme would result in reduction of AT&C losses, reduction of gap between Average Cost of Supply and average revenue on subsidy received basis, improving return on equity and issue of notification of multiyear tariff along with investment in distribution sector. This scheme will facilitate Central government intervention, and catalyst for revamping and restructuring the state sector distribution scheme.

********


SH/SKS
(Release ID :78626)

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