RGGVY & APDRP

7/22/2019 RGGVY & APDRP

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sgb s ganesh babu. 1

RGGVY & APDRP.Rajiv Gandhi grameen vidhyuthikaranyojana and Accellerated power developmentand reforms programme)

Compiled byS.Ganesh babu


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RAJIV GANDHI GRAMEENVIDYUTIKARAN YOJANA

Was launched in April-05 bymerging all ongoing schemes.

Under the program 90% grant isprovided by Govt. of India and 10%as loan by REC to the State

Governments. REC is the nodal agency for the

program.


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RGGVY contd

The RGGVY aims at :Electrifying all villages and habitations asper new definition

Providing access to electricity to all ruralhouseholds

Providing electricity Connection to Below

Poverty Line (BPL) families free of charge.


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RGGVY Contd

Infrastructure under RGGVY :

Rural Electricity Distribution Backbone(REDB) with 33/11 KV (or 66/11 KV) sub-station of adequate capacity in blocks wherethese do not exist.

Village Electrification Infrastructure (VEI)with provision of distribution transformerof appropriate capacity invillages/habitations.

Decentralized Distributed Generation(DDG) Systems based on conventional &nonconventional energy sources where gridsupply is not feasible or cost effective.


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RGGVY contd

Implementation Methodology and

conditions:

Preparation of District based detailed projectreports for execution on turnkey basis.

Involvement of central public sectorundertakings of power ministry inimplementation of some projects.

Certification of electrified village by theconcerned Gram Panchayat.


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Deployment of franchisee for the

management of rural distribution forbetter consumer service and reduction inlosses.

Undertaking by States for supply ofelectricity with minimum daily supply of 6-8 hours of electricity in the RGGVY

network.


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RGGVY contd

Making provision of requisite revenue

subsidy by the state.

Determination of Bulk Supply Tariff (BST)for franchisee in a manner that ensures

commercial viability.

Three tier quality monitoring Mechanism forXI Plan Schemes made mandatory.

Web based monitoring of progress.


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RGGVY contd

Release of funds linked to achievement ofpre-determined milestones

Electronic transfer of funds right up tothe contractor level.

Notification of Rural Electrification Plansby the state governments.


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RGGVY Scheme of Rural Electricity Infrastructureand Rural Household Electrification", sanctioned inthe XI-Plan:

Goal of providing access to electricity to allhouseholds,

electrification of about 1.15 lakh un-electrifiedvillages and electricity connections to2.34 crore BPLhouseholds by 2009.

The approval has been accorded for capital subsidy ofRs.28000 crore during the Eleventh Plan period.

Ninety per cent capital subsidy is provided towardsoverall cost of the projects under the scheme,excluding the amount of state or local taxes, whichwill be borne by the concerned State/State Utility.


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RGGVY IN THE XI PLAN contd

10% of the project cost to be contributed by

states through own resources/loan fromfinancial institutions.

The states will finalize their RuralElectrification Plans in consultation withMinistry of Power and notify the same withinsix months.

Rural Electrification Plan will be a roadmap

for generation, transmission, sub-transmission and distribution of electricity inthe state.


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RGGVY IN XI PLAN Contd

For projects to be eligible for capitalsubsidy under the scheme, priorcommitment of the States be obtainedbefore sanction:

Guarantee by State Government for aminimum daily supply of 6-8 hours ofelectricity in the RGGVY network with theassurance of meeting any deficit in this

context by supplying electricity at subsidizedtariff as required under the Electricity Act,2003.

Deployment of franchisees for the

management of rural distribution in projectsfinanced under the scheme and to undertakesteps necessary to make the schemeoperational.


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RGGVY IN XI PLAN contd

SCOPE OF THE SCHEME:Under the scheme, projects could be financed withcapital subsidy for provision of :

Rural Electricity Distribution Backbone(REDB)

Provision of 33/11 KV (or 66/11 KV) sub-stations of

adequate capacity and lines in blocks where these donot exist.

Creation of Village ElectrificationInfrastructure (VEI)

Electrification of un-electrified villages. Electrification of un-electrified habitations with a

population of above 100. Provision of distribution transformers of appropriate

capacity in electrified villages / habitats).


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Decentralized Distributed Generation(DDG) and Supply

Decentralized distribution-cum-generationfrom conventional or renewable or non-conventional sources such as biomass, bio fuel,bio gas, mini hydro, geo thermal and solar etc.

for villages where grid connectivity is eithernot feasible or not cost effective. The funding will be on the pattern of 90%

subsidy from Government of India and 10%loan from REC or from own funds of thestate/loan from financial institutions.

The Monitoring Committee on RGGVY, whilesanctioning DDG projects under RGGVY, shallcoordinate with MNRE to avoid any overlap.

The provision for subsidy requirement forDDG is Rs.540 crore.


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REDB, VEI and DDG:

would indirectly facilitate powerrequirement of agriculture and otheractivities including irrigation pump

sets, small and medium industries,khadi and village industries, coldchains, healthcare, education and ITetc. This would facilitate overall

rural development, employmentgeneration and poverty alleviation.


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Rural Household Electrification ofBelow Poverty Line Households:

BPL households will be provided freeelectricity connections. The rate ofreimbursement for providing free connectionsto BPL households would be Rs.2200 perhousehold.

Households above poverty line are to pay fortheir connections at prescribed connectioncharges and no subsidy would be available forthis purpose.

Wherever SC/ST population exists amongstBPL households and subject to being eligibleotherwise, they will be provided connectionfree of cost and a separate record will be keptfor such connection.


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The over-all subsidy ofcomponents from takentogether should be keptwithin 90% of the over-allproject cost.


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THREE-TIER QUALITYMONITORING MECHANISM

The projects under the scheme will be subject to Quality

Monitoring Mechanism.

First Tier

Project implementing agency (PIA) would be responsible for thefirst tier of the Quality Control Structure. Further PIA will engage

third party inspection agency, whose responsibility will be to ensurethat all the materials to be utilized and the workmanship confirm tothe prescribed specifications.

It will be synchronized with phased release of funds under RGGVYand inspection and proof of corrective action will be mandatoryrequirement for release of funds.

This inspection will cover approx. 50% villages on random samplebasis for each project and 10% pre-despatch inspections of majormaterials.


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THREE-TIER QUALITY MONITORING MECHANISM , contd

Second TierRural Electrification Corporation, will

get the inspection done of theworks/materials by its non-field staff /by outsourcing it.

REC may outsource it to retiredemployees of State ElectricityBoards/State Utilities/ CPSUs.

All such reports should be organized andanalyzed by REC.

These individuals would be designated asREC Quality Monitors (RQM).

The inspection will cover quality checksat pre-shipment stage at the vendors'outlet of major materials and 10%villages on random sample basis.


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Third TierIndependent Evaluators (Individuals

/Agency) will be engaged by the Ministryof Power for evaluation, at random. These persons would be designated as

National Quality Monitors (NQM). It will be the responsibility of the state

to facilitate the inspection of works bythe NQM, who shall be given free accessto all administrative, technical andfinancial records.

Evaluation will cover 1% villages. Theyshall also report on the generalfunctioning of the Quality Controlmechanism in the District.


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(Third tier contd)

Shall, each month, report on the action

taken on each of the pending Reports. All works rated unsatisfactory' shall be

re-inspected by RQM or NQM after arectification report has been receivedfrom the REC Quality Coordinator.

REC will designate an Executive Directoras in charge of the Monitoring system.

Recurrent adverse reports about qualityof works in a given District / Statemight entail suspension of the Programin that area till the underlying causes ofdefective work have been addressed.


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(Third tier contd)

The REC Quality Coordinator / Third party

inspection unit shall be the authority. The Monitors shall submit their report to the

Ministry.

The reports of the NQMs will be sent by REC

to the RQM for appropriate action within aperiod to be specified.

In case quality check by RQM or NQM reveals'unsatisfactory' work, the implementing agency

shall ensure that the contractor replace thematerial or rectifies the workmanship (as thecase may be) within the time period stipulated.


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(Third tier contd)

In respect of NQM Reports, theREC Quality Coordinator to receiveand inquire into complaints /representations in respect of quality

of works and they would beresponsible for sending a replyafter proper investigation to thecomplainant within 30 days.


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(Third tier contd)

The REC for this purpose, shall ensure

the following:- The name, address and other details of the

REC Quality Coordinator / third partyinspection unit will be given adequate publicity

in the State (including tender notices,websites, etc.) as the authority empowered toreceive complaints.

All complaints shall be acknowledged on

receipt (giving registration no.) and likelydate of reply shall be indicated. On receipt ofthe report, the complainant shall be informedof the outcome and the action taken /proposed.

,


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,

(Third tier contd)

Complaints received through the Ministry of

Power, REC will normally be sent to the RECQuality Coordinator for enquiry and necessaryaction. In case report from an RQM is desired,this shall be furnished within the time

specified. In case an adequate response is not received

within the stated time schedule, the REC maydepute an NQM and further processing will be

done only on the basis of NQM report. The RQC shall make a monthly report to the

REC (in a prescribed format) and the status ofaction on complaints shall be discussed in theDistrict Committees.


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REC could develop a web site forcomplaints, inspection and rectification.

The Quality Control Mechanism would begoverned by the Quality Control Manualprepared by REC for the scheme.


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OTHER FEATURESMonitoring Committee

The Monitoring Committee constitutedby the Ministry of Power under theChairmanship of Secretary (Power),Government of India will:

Sanction the projects, including revised costestimates.

Monitor and review the implementation of thescheme in addition to issuing necessaryguidelines from time to time for effectiveimplementation of the scheme.


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Cost NormsThe cost norms for villageelectrification are:

90% grant will not be applicable to theamount of state or local taxes, which willhave to be borne by the concerned State /State Utility.

They would be released by the Monitoring

Committee in exceptional cases to beanalyzed for border area, remote districtsetc.


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COST NORMS FOR VILLAGE ELECTRIFICATION:

Electrification of un-electrified village Cost :

In normal terrain: 13.0 Lakhs In hilly, tribal, desert areas: 18.0 Lakhs

Intensive electrification of already electrified

village In normal terrain: 4.0 Lakhs In hilly, tribal, desert areas: 6.0 Lakhs

Cost of electricity connection to BPL household: 0.022 Lakhs


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FRANCHISEES The management of rural distribution would

be through franchisees who could be:

Non-Governmental Organizations (NGOs), Users Association, Panchayat Institutions, Cooperatives or individual entrepreneurs.

The franchisee arrangement could be forsystem beyond and including feeders fromsub-station or from and including DistributionTransformer/(s).

The franchisee should be preferably inputbased to reduce AT&C losses so as to makethe system revenue sustainable.

FR NCH EE d


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FRANCHISEES contd

Revenue Sustainability

Based on the consumer mix, the prevailing consumertariff and, the likely load, the Bulk Supply Tariff (BST)

for the franchisee would be determined after ensuringcommercial viability of the franchisee.

Wherever feasible, bidding may be attempted fordetermining the BST.

This Bulk Supply Tariff would be fully factored into thesubmissions of the State Utilities to the StateElectricity Regulatory Commissions (SERCs) for theirrevenue requirements and tariff determination.

The State Government under the Electricity Act isrequired to provide the requisite revenue subsidies tothe State Utilities, if it would like tariff for anycategory of consumers to be lower than the tariffdetermined by the SERC.


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FRANCHISEES contd

Revenue Sustainability, contd.,

While administering the scheme, prior

commitments may be taken from theState Government regarding

Determination to bulk supply tariff forfranchisees in a manner that ensurestheir commercial viability.

Provision of requisite revenue subsidyby the State Government to the StateUtilities as required under theElectricity Act.

The capital subsidy for eligible projectsunder the scheme would be giventhrough REC.


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FRANCHISEES contd

Revenue Sustainability, contd.,

These eligible projects shall beimplemented fulfilling the aboveconditions.

In the event the projects are notimplemented satisfactorily inaccordance with the conditionsindicated, the capital subsidy would

be converted into interest bearingloans.

FRANCHISEES td


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FRANCHISEES contdRevenue Sustainability, contd.,

The services of Central Public SectorUndertakings (CPSUs) have been offered tothe states for assisting them in the executionof Rural Electrification Projects as per theirwillingness and requirement. With a view toaugment the implementation capacities for theprogram.

REC has entered into Memorandum ofUnderstanding (MOUs) with NTPC,POWERGRID, NHPC and DVC to make availabletheir project management expertise and

capabilities to states wishing to use theirservices. This is being made operationalthrough a suitable Tripartite / QuadripartiteAgreement.


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ACCELERATED POWER DEVELOPMENT ANDREFORMS

PROGRAMME (APDRP)

Distribution Reforms: The Distribution Reform was identified as the

key area to bring about the efficiency andimprove financial health of the power sector.

29 states have signed the Memorandum ofUnderstandings with the power Ministry totake various steps to undertake distributionreforms in a time bound manner.

21 states have constituted SERCs and 18 haveissued tariff orders in the direction ofrationalizing the tariffs.

States are now better committed towardssubsidy payment to the utilities.


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Accelerated Power Development andReforms Program (APDRP):

Government of India approved a schemecalled Accelerated Power Development andReforms Program (APDRP) in March 2003to accelerate distribution sector reforms.

The main objectives of the program are:o Reduce Aggregate Technical & Commercial

(AT&C) losses.

o Bring about commercial viability in the power

sector.o Reduce outages & interruptions.

o Increase consumer satisfaction.


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Re-structured APDRP ( R APDRP)

The Govt. of India has proposed to continueR-APDRP during the XI Plan with revisedterms and conditions as a Central SectorScheme.

The focus of the program shall be on actual,demonstrable performance in terms ofsustained loss reduction.

Establishment of reliable and automatedsystems for sustained collection of accuratebase line data, and the adoption of

Information Technology in the areas ofenergy accounting will be essential beforetaking up the regular distributionstrengthening projects.


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Program Coverage

It is proposed to cover urban areas - townsand cities with population of more than30,000 (10,000 in case of special categorystates).

In addition, in certain high-load densityrural areas with significant loads, works ofseparation of agricultural feeders fromdomestic and industrial ones, and of HighVoltage Distribution System (11kV) will alsobe taken up.

Further, towns / areas for which projects

have been sanctioned in X Plan, R-APDRPshall be considered for the XI Plan, onlyafter either completion or short closure ofthe earlier sanctioned projects.


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Scheme:

Projects under the scheme shall betaken up in Two Parts.

Part-A shall include the projects forestablishment of baseline data and ITapplications for energyaccounting/auditing & IT basedconsumer service centres.

Part-B shall include regular distributionstrengthening projects.


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Part - A: Preparation of Base-line data for the

project area covering Consumer Indexing,

GIS Mapping, Metering of DistributionTransformers and Feeders, and AutomaticData Logging for all DistributionTransformers and Feeders and SCADA /DMS system (only in the project area having

more than 4 lakhs population and annualinput energy of the order of 350 MU).

It would include Asset mapping of the entire

distribution network at and below the 11kVtransformers and include the DistributionTransformers and Feeders, Low Tensionlines, poles and other distribution networkequipment.


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It will also include adoption of IT applications

for meter reading, billing & collection; energyaccounting & auditing; MIS; re - dressal ofconsumer grievances; establishment of ITenabled consumer service centres etc.

The base line data and required system shallbe verified by an independent agencyappointed by the Ministry of Power.


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Part - B: Renovation, modernization and strengthening

of11kVlevelSubstations,Transformers/Transformer Centers, Re-conductoring of lines at11kV level and below, Load Bifurcation,feeder separation, Load Balancing, HVDS(11kV), Aerial Bunched Conductoring in dense

areas, replacement of electromagneticenergy meters with tamper proof electronicsmeters, installation of capacitor banks andmobile service centres etc.

In exceptional cases, where sub-transmissionsystem is weak, strengthening at 33 kV or 66kV levels may also be considered.


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Eligibility Criteria for R-APDRP assistanceThe States / Utilities will be required to:

Constitute the State Electricity RegulatoryCommission.

Achieve the following target of AT&C lossreduction at utility level:

Utilities having AT&C loss above 30%:Reduction by 3% per year

Utilities having AT&C loss below 30%:Reduction by 1.5% per year

Commit a time frame for introduction ofmeasures for better accountability at alllevels in the project area and submit previousyears AT&C loss figures of identified projectarea as verified by an independent agencyappointed by Ministry of Power (MoP) by 30thJune.


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Eligibility Criteria for R-APDRP assistance contd:

The independent agency would

verify that: All input points are identified and meteredwith downloadable meters for energy inflowaccounting in scheme area

All outgoing feeders are to be metered in

substation with downloadable meters Scheme area should be ring fenced i.e.

export and import meters for energy accounting shall be ensured besides

segregating the rural load of the scheme

area by ring fencing if not on separatefeeder


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Eligibility Criteria for R-APDRP assistance contd:

The above shall provide the input energyand corresponding cash collected for

calculating AT&C losses. The same shallbe carried out for at least for threebilling cycles and got verified by theindependent agency.

This loss level will be the baseline forconsidering conversion of loan into grantfor Part B projects

Devise a suitable incentive scheme forstaff linking to achievements of 15%AT&C loss in the project area.


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Funding Mechanism:

GoI will provide 100% Loan for part A ofthe R-APDRP schemes which shall includeprojects for establishing Base Line dataand IT applications for energy accounting/auditing and IT based consumer services

etc. GoI will provide up to 25% (90% for

special category States) Loan for Part Bof the RAPDRP schemes which shallinclude regular distribution strengtheningprojects.

The entire loan from GoI will be routedthrough PFC/REC (FIs) for the respectiveschemes funded by them.


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The counterpart funding will bedone by PFC/REC (FIs) as per its

prevailing policy.

PFC / REC will be the prime lenderfor funding these schemes. In case

of default by the utility thecommercial loan of PFC / REC will berecovered first (being the primaryLender) before that of any otherlender for funding such schemes.

C f G L G


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Conversion of GoI Loan to Grant: The entire amount of GoI loan (100%) for part A

of the project shall be converted into grant after

establishment of the required Base-Line datasystem within a stipulated time frame and dulyverified by TPIEA.

Up to 50% (90% for special category States)loan for Part-B projects shall be converted into

grant in five equal tranches on achieving 15%AT&C loss in the project area duly verified byTPIEA on a sustainable basis for a period of five

years.

If the utility fails to achieve or sustain the 15%AT&C loss target in a particular year, that yearstranche of conversion of loan to grant will bereduced in proportion to the shortfall in achieving15% AT&C loss target from the starting AT&C

loss figure.


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RGGVY & APDRP