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English Release 30-July 2014
Date Month Year
  • President's Secretariat
  • President of India condoles the loss of lives in landslides in Pune
  • President congratulates medal winners in Commonwealth Games
  • The Rashtrapati Bhavan Museum will open for public viewing from August 1, 2014
  • Prime Minister's Office
  • PM condoles loss of lives in landslide in Pune district
  • Sikkim Governor calls on PM
  • Full text of PM's address at 86th ICAR Foundation Day
  • Min for Develop. of North-East Region
  • Developing Ecosystem in North Eastern Region
  • Assistance to North Eastern Region under Special Accelerated Development Programme
  • Min of Commerce & Industry
  • Subsidy Given to Agri Exporters
  • Grant of Infrastructure Status to Hotel Industry
  • No Increase in Import Duty on Apple
  • Relaxation of Conditions for FDI in Different Sectors
  • Effect of Fall in Prices of Natural Rubber
  • Jobs Created Through Manufacturing Units
  • Production of Fine Quality Tea in Uttarakhand
  • US Opposition to Section 3(D) of the Indian Patent Act
  • Min of Culture
  • Funds for World Heritage Sites
  • Restoration and Maintenance of Monuments
  • Min of Defence
  • Air Chief Marshal Arup Raha Takes Over as New COSC
  • Min of Earth Science
  • Doppler Weather Radars
  • Impact of Abnormal Weather Condition
  • COMAPS
  • Min of Environment and Forests
  • Joint Working Group – Important Platform for addressing concerns of Environment and Sustainable Development: Shri Prakash Javadekar US Special Envoy for Climate Change meets Shri Prakash Javadekar
  • Min of External Affairs
  • Supply of Uranium for peaceful uses of Nuclear Energy
  • Step Taken by Government to Reduce Delay in Passport Issuance
  • States of Indo-Us civil nuclear deal
  • Ruling on Maritime boundary between India and Bangladesh
  • Land corridor to religious places in Pakistan
  • Indo-UK Ties
  • Hindi as official language in UN
  • Haj Pilgrimage
  • Expulsion of Indian journalists by Pakistan
  • Diplomats in Indian Missions Abroad
  • Ministry of Finance
  • Union Finance Minister to Hold Meeting with the Chief Executive Officers (CEOs) of Public Sector Banks and Financial Institutions on Comprehensive Financial Inclusion Plan and Other Issues Tomorrow
  • Min of Home Affairs
  • Review of Security Cover to VIPs
  • Claims for Freedom Fighter Pension
  • ILLICIT Drug Cultivation
  • Proposal to Restructure NDMA
  • Refugees and Illegal Migrants
  • Bharat Ratna for Major Dhyan Chand
  • Min of Human Resource Development
  • Institutions of Higher Education in Andhra Pradesh & Telangana
  • Uniform Regulatory Framework for Universities
  • Increase is Expenditure on School Education
  • Changes in Education System
  • Joint Executive MBA Programme of IIT Bombay & WUSIL
  • National Madarsa Modernization Programme
  • Reforms in Higher Education
  • Reason for Reverting to 3 Years Undergraduate Degree in Delhi University
  • Government to Formulate New Education Policy
  • Decrease in out of School Children
  • Minority Youths in Higher Education
  • Min of Labour & Employment
  • Steps Taken by the Government for Construction Workers
  • Amalgamation of Schemes
  • Revision of EPF Pension
  • Amendment to Archaic Factories Act, 1948
  • Labour Plantation Act, 1951
  • Safety at Workplaces
  • Welfare of Industrial Workers
  • Interest Rate on EPF
  • Min of Micro,Small & Medium Enterprises
  • Funding to MSME
  • Virtual Network for MSME
  • De-Reservation of Items from Small Scale Sector
  • Production in MSME
  • Growth in MSME Sector
  • Impetus to Young Entrepreneurs in MSME
  • Production/Export of Khadi
  • Indian Institute of Entrepreneurship
  • Min of Mines
  • Geological Survey of India
  • Development of Mining Areas
  • Mining of Iron Ore in Maharashtra
  • Min of Overseas Indian Affairs
  • Non- Resident Indians Investment Facilitation through Overseas Indian Facilitation Centres
  • Non- Resident Indians Investment Facilitation through Overseas Indian Facilitation Centres
  • Min of Personnel, Public Grievances & Pensions
  • Officials with Doubtful Integrity
  • Grievances of Pensioners
  • Performance Related Incentives
  • Eradication of Corruption
  • CBI Investigation
  • ACC Appointments
  • Min of Petroleum & Natural Gas
  • Press Release
  • Roadmap for Exploitation of Methane
  • Measures to Increase Exploration of Gas and Oil
  • Steps to Make Cities Kerosene Free
  • Fiscal Subsidy on Domestic LPG
  • Global crude oil price of Indian Basket increased to US$ 106.34 per bbl on 29.07.2014
  • Ministry of Railways
  • Ministry of Railways Clarifies that There is No Plan Whatsoever to Replace All Second Sleeper Coaches with AC Coaches in Mail and Express Trains
  • Min of Statistics & Programme Implementation
  • Provisional Results of Sixth Economic Census
  • Min of Steel
  • Iron-Ore Supplied by NMDC
  • Review of Safety and Security of Steel Plants
  • Min of Textiles
  • Santosh Gangwar Launches MIS for Skill Scheme
  • Ministry of Tourism
  • Steps taken to attract Foreign Tourists
  • Countering Negative Publicity of India in International Media
  • Foreign Tourists
  • National Mission to encourage Pilgrimage Tourism
  • Promotion of Cyclopean Walls in Rajgir, Bihar as Tourist Destination
  • India and Australian State of Victoria discuss further strengthening of bilateral cooperation in Tourism Sector
  • Min of Urban Development
  • 16 Former Ministers Served Eviction Notices For Unauthorized Stay; Owe Damage Charges of Rs.21 Lakhs Per Month
  • 16 Former Ministers Served Eviction Notices for Unauthorized Stay; Owe Damage Charges of Rs.21 Lakhs Per Month
  • Min of Youth Affairs & Sports
  • India won 10 medals on day 6 of CWG 2014

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.

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SH/SKS
(Release ID :78626)

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