Facility for bpl consumers
MINIMUM NEEDS PROGRAM (MNP)-
The MNP, which exclusively targeted states with less than 65% rural electrification (by the olddefinition),45 provides 100% loans for last mile connectivity. The program resources are drawnfrom the Central Plan Assistance. Rs. 775 crore was released during 2001-03 for ruralelectrification under the MNP. The scheme was discontinued in 2004-05 on account ofdifficulties in implementation.
ACCELERATED RURAL ELECTRIFICATION PROGRAM(AREP)-
The AREP, operational since 2002, provides an interest subsidy of 4% to states for RE programs.The AREP covers electrification of un-electrified villages and household electrification and has an approved outlay of Rs. 560 crore under the 10th Plan. The interest subsidy is available to state governments and electricity utilities on loans availed from approved financial institutions like theREC, PFC (Power Finance Corporation) and from NABARD under the Rural InfrastructureDevelopment Fund (RIDF).
RURAL ELECRTICITY SUPPLY TECHNOLOGY MISSION(REST)-
The REST was initiated on 11th September 2002. The missions objective46 is theelectrification of all villages and households progressively by year 2012 through local renewable energy sources and decentralized technologies, along with the conventional grid connection.
REST proposes an integrated approach47 for rural electrification and aims:-
To identify and adopt technological solutions
To review the current legal and institutional framework and make changes whennecessary
To promote, fund, finance and facilitate alternative approaches in ruralelectrification, and
To coordinate with various ministries, apex institutions and researchorganizations to facilitate meeting national objectivesAccelerated Electrification of One Lakh Villages and One Crore Households, MNP and KutirJyoti have now been merged with the RGGVY, discussed in detail ahead.