Government policies and Interventions

KEY POINTS

Structural difficulties in 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.

Pradhan MantriSahajBijliHarGharYojna (or) Saubhagya

• 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 solar power packs with battery bank for un-electrified households located in remote and inaccessible areas will be provided.

• Deendayalupadhyaya Gram JyotiYojna which subsumed the Rajiv Gandhi GrameenVidyutikaranYojna. Both the schemes which was introduced earlier also aimed to provide free electricity connections to the poor.

Shortcomings

• Unfortunately, this scheme doesn’t address the 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 fails to account illegal connections taken by households which find it difficult to afford legal access to power.

Success of reaching the target of electrification for all will require not just budgetary fund allocation, but largely depends on addressing the structural complications.