Schemes under Ministry of Power

Ujwal Discom assurance Yojna

  1. Introduction
  2. Scheme Components
  3. Salient features
  4. Benefits
  5. Impact


Ujjwal DISCOM Assurance Yojana is the financial turnaround and revival package for electricity distribution companies of India initiated by the Government of India with the intent to find a permanent solution to the financial mess that the power distribution is in.

The Scheme Envisages

  1. Financial Turnaround
  2. Operational improvement
  3. Reduction of cost of generation of power
  4. Development of Renewable Energy
  5. Energy efficiency & conservation

Salient Features of the Scheme

For Financial Turnaround

  1. States will take over 75% of the DISCOM debt as on Sept 30, 2015 – 50% in FY 2015-16 and 25% in FY 2016-17.
  2. States to issue non-SLR including SDL bonds, to take over debt and transfer the proceeds to DISCOMs in a mix of grant, loan, equity.
  3. Maturity period of bonds – 10-15 years.
  4. Moratorium period – up to 5 years.
  5. Rate – G-sec plus 0.5% spread plus 0.25% spread for non-SLR.
  6. Borrowing not to be included for calculating fiscal deficit of the State.

Achieving Financial Turnaround

  • Balance 25% of debt to remain with the DISCOMs in the following manner:
  • Issued as State-backed DISCOM bonds; or
  • Re-priced by Banks/FIs at interest rate not more than bank base rate + 0.10%
  • States to take over future losses of DISCOMs as per trajectory in a graded manner.
  • [0% of loss of 14-15 & 15-16; 5% of 16-17; 10% of 17-18; 25% of 18-19 & 50% of 2019-20]
  • Balance losses to be financed through State bonds or DISCOM bonds backed by State Govt guarantee, to the extent of loss trajectory finalised with MoP.
  • Jharkhand and J&K given special dispensation for take over of outstanding CPSU dues

Benefits to Participating States

  • Reduction in Cost of power through Central Support
  • Increased supply of domestic coal
  • Allocation of coal linkages at notified prices
  • Coal price rationalization
  • Coal linkage rationalization & allowing coal swaps
  • Supply of washed & crushed coal
  • Additional coal at notified prices
  • Faster completion of Interstate Transmission lines
  • Power purchase through transparent competitive bidding

Impact of the Scheme

  • Financially & Operationally sound DISCOMs
  • Increased demand for power
  • Improvement in PLF of generating plants
  • Reduction in stressed assets
  • Availability of cheaper funds
  • Increased capital investment
  • Development of Renewable Energy sector


Deen Dayal Upadhyay Gram Jyoti scheme

  1. Introduction
  2. Objectives
  3. Components of the scheme
  4. Funding mechanism
  5. Benefits from the scheme


  • The demand of electricity in rural areas is increasing day by day due to increase in customer base, changes in lifestyle and consumption pattern which requires continual strengthening and augmentation of distribution network.
  • However, the poor financial health of the distribution utilities has resulted in under – investment in the distribution network leading to poor upkeep and maintenance of assets, particularly in rural areas.
  • Therefore, strengthening and augmentation of sub – transmission & distribution infrastructure is also considered necessary to ensure reliable and quality power supply in rural areas.
  • The Government of India has launched the scheme “Deendayal Upadhyaya Gram Jyoti Yojana” for rural electrification.
  • The erstwhile Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY) scheme for village electrification and providing electricity distribution infrastructure in the rural areas has been subsumed in the DDUGJY scheme.
  • Rural Electrification Corporation is the Nodal Agency for implementation of DDUGJY.


The Ministry of Power, Government of India has launched Deen Dayal Upadhyaya Gram Jyoti Yojana for rural areas with the following objectives:

  1. To provide electrification to all villages
  2. Feeder separation to ensure sufficient power to farmers and regular supply to other consumers
  3. Improvement of Sub-transmission and distribution network to improve the quality and reliability of the supply
  4. Metering to reduce the losses

Components of the scheme

The following are the scheme components:

  1. Separation of agriculture and non-agriculture feeders facilitating judicious rostering of supply to agricultural & non-agricultural consumers in the rural areas;
  2. Strengthening and augmentation of sub-transmission & distribution (ST&D) infrastructure in rural areas, including metering at distribution transformers, feeders and consumers end;
  3. Rural electrification, as per CCEA approval dated 01.08.2013 for completion of the targets laid down under RGGVY for 12th and 13th Plans by subsuming RGGVY in DDUGJY and carrying forward the approved outlay for RGGVY to DDUGJY.

Benefits from the scheme

  • All villages and households shall be electrified
  • Increase in agriculture yield
  • Business of Small and household enterprises shall grow resulting into new avenues for employment
  • Improvement in Health, Education, Banking (ATM) services
  • Improvement in accessibility to radio, telephone, television, internet and mobile etc
  • Betterment in social security due to availability of electricity
  • Accessibility of electricity to schools, panchayats, hospitals and police stations etc
  • Rural areas shall get increased opportunities for comprehensive development

Ujala Scheme

  1. About the Scheme
  2. About SLNP
  3. performance

About UJALA Scheme

  • The main objective of the Ujala Scheme is to promote efficient lighting, enhance awareness on using efficient equipment which reduce electricity bills and help preserve environment.
  • The scheme is being implemented by Energy Efficiency Services Limited (EESL), a joint venture of PSUs under the Union Ministry of Power.
  • UJALA is a flagship project of the Govt. of India where it wants every home in India to use LED bulbs so that the net power or energy consumption rate comes down and the carbon emission rates can also be checked.

About SLNP

  • Launched in 2015, EESL’s Street Light National Programme (SNLP) has been instrumental in replacing over 50 lakh street lights in over 500 cities in India, leading to 135 crore kWh of energy savings and cost saving of INR 742 crore every year.
  • Under the programme, EESL replaces the conventional street lights with LEDs at its own costs, with no upfront investment by the municipalities, thereby making their adoption even more attractive.

Performance of the schemes

  • Under the SLNP initiative, in five years around 1.03 crore smart LED street lights were installed.
  • This helped in reducing Green House Gas emission by 4.8 million tonnes annually. Also, the initiative has created 13,000 jobs.
  • Under UJALA programme, 36.13 crore LED bubs have been distributed so far.
  • This helped in reducing the green house gas emission by 38 million tonnes annually.