PM Modi launches Saubhagya Yojana to deliver electricity to poor households

Prime Minister Narendra Modi rolled out the Sahaj Bijli Har Ghar Yojana, or Saubhagya Yojana, in a bid to provide "access to electricity to all willing households". The project has been introduced to provide electric connections to poor households in rural as well as urban regions of the country.

The total outlay for the Saubhagya scheme has been pegged at 16,320 crore, out of which Rs 12,320 crore will be borne by the central government as govrnment budgetary assistance. Out of the total purview, Rs 14,025 crore has been set aside for rural households, Rs 10587.50 crore will be provided as government budgetary support. A total of Rs 22295 crore will be spent for electrifying urban households under the Saubhagya scheme, out of Rs 1732.50 crore will be provided by union government.

The union government will provide 60 per cent of the funds required for the Saubhagya scheme in form of grants to states and union territories, and it will be increased to 85 per cent in case of states with special category status. States and union territories will have to bear 10 per cent of the total expenditure under the Saubhagya scheme, whereas special category states will have to incur only 5 per cent of the total spending. The rest of funds will be acquired from banks and financial institutions in the form of loans.

States and union territories have been instructed to finish household electrification under the Saubhagya Yojana by March 31, 2019. Additional grants will be awarded to states and union territories who complete the target of 100 per cent household electrification by December 31, 2018. These additional grants will be half of the loan incurred by the states and union territories for the completion of Saubhagya scheme.

"It is the responsibility of my government to solve the problems of the poor.  After 70 years of independence, there are 4 crores houses still don't have electricity. You can't imagine living without electricity," PM Modi said during the launch emphasising it was tragic so many Indians still lived without electricity.