Ministry of Power launched Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY) as one of its flagship programme in March 2005 with the objective of electrifying over one lakh un-electrified villages and to provide free electricity connections to 2.34 Crore rural BPL households. This programme has been brought under the ambit of Bharat Nirman.

Under RGGVY, electricity distribution infrastructure is envisaged to establish Rural Electricity Distribution Backbone (REDB) with at least one 33/11KV sub-station in a block, Village Electrification Infrastructure (VEI) with at least a Distribution Transformer in a village or hamlet, and standalone grids with generation where grid supply is not feasible.

Subsidy towards capital expenditure to the tune of 90% is being provided, through Rural Electrification Corporation Limited (REC), which is the nodal agency for implementation of the scheme. Electrification of un-electrified Below Poverty Line (BPL) households is being financed with 100% capital subsidy @ Rs.3000/- per connection in all rural habitations for XII Plan Programme.

Rural Electrification Corporation is the Nodal Agency for implementation of the scheme. The services of Central Public Sector Undertakings (CPSU) are available to the States for assisting them in execution of Rural Electrification projects.

The Bharat Nirman target for RGGVY was to electrify 1 lakh villages and to provide free electricity connections to 175 lakh BPL households by March 2012 which was achieved by 31st December, 2011.

Under RGGVY, Ministry of Power has sanctioned 921 projects to electrify 1,24,755 unelectrified villages, intensive electrification of 603581 partially electrified villages and to provide free electricity connections to 405.72 lakh BPL rural households. As on 30th September, 2014, works in 1,08,661 unelectrified villages and intensive electrification of 311881 partially electrified villages have been completed and 219.77 lakh free electricity connections have been released to BPL households.