Under RGGVY, electricity distribution infrastructure is envisaged to establish Rural Electricity Distribution
Backbone (REDB) with at least a 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 a nodal agency for implementation of the scheme. Electrification of un-electrified Below Poverty Line (BPL)
households is being financed with 100% capital subsidy @ Rs.2200/- per connection in all rural habitations.
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 the execution of Rural Electrification projects. The
Management of Rural Distribution is mandated through franchisees.
Under Phase-I of RGGVY, Ministry of Power has sanctioned 576 projects for 546 districts to electrify 1, 10,886 villages and to
provide free electricity connections to 2.29 Crore BPL rural households. As on 31st Dec., 2012, works in 1, 06,335 villages have
been completed and 204.47 lakh free electricity connections have been released to BPL households. 72 projects under Phase-II
covering electrification of 1909 un-electrified villages, 46606 un-electrified habitations, 53,505 partially electrified villages,
25,947 partially electrified habitations and release of free electricity connections to 45,59,141 BPL households have also been
sanctioned with an outlay of Rs. 7964.32 crore
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.