Shortfalls in Saubhagya scheme

Why in news?

PM recently launched Pradhan Mantri Sahaj Bijli Har Ghar Yojana, also known as Saubhagya scheme.

What are the fundamental problems in Indian power sector?

• The power generation utilities in India remain vastly under-utilised, and investments in the sector is drastically falling.
• The plant load factor (PLF) an indicator of capacity utilisation of power generation units, has dropped consistently over the decade.
• The Ujwal DISCOM Assurance Yojana (UDAY) has failed to make enough of a difference to this state of affairs.
• Demand for electricity from State distribution companies is dropping with their deteriorating financial status.
• Distribution agencies have very little incentive to demand more electricity from power generators, and they cannot make profits.

What are the highlights of Saubhagya scheme?

• Pradhan Mantri Sahaj Bijli Har Ghar Yojana, or Saubhagya is recently launched scheme.
• It aims to make electricity accessible to every household by the end of 2018.
• Under the scheme poor households who have no access to electricity will be provided electricity connections free of cost.
• The beneficiaries for free electricity connections would be identified using Socio Economic and Caste Census (SECC) 2011 data.
• This scheme hopes to improve electricity access within villages that are already classified as “electrified”, according to the criterion that 10% of households enjoy access to electricity.
• The solar power packs with battery bank for un-electrified households located in remote and inaccessible areas will be provided.
• The Rural Electrification Corporation Limited (REC) will remain the nodal agency for the operationalization of the scheme throughout the country.

What are the shortcomings?

• The scheme doesn’t address structural issues that plague the broken power sector.
• It does very little to address the real problem of affordability i.e. the recurring burden of power bills.
• It failsto account illegal connections taken by households which find it difficult to afford legal access to power.

Source: The Hindu