No.25/1/2014-APDRP Government of India Ministry of Power (Distribution Division) EFC MEMORANDUM. Proposal for Deendayal Upadhyaya Gram Jyoti Yojana

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1 No.25/1/2014-APDRP Government of India Ministry of Power (Distribution Division) EFC MEMORANDUM Date: 7th August Proposal identification 1.1 Title of the proposal. Proposal for Deendayal Upadhyaya Gram Jyoti Yojana 1.2 Name of the sponsoring agency (Ministry/ Department/ Autonomous Body/ Central PSE). Ministry of Power 1.3 Proposed duration of the proposal / Scheme. Proposal is for balance period of XII Five Year Plan (i.e to ) and XIII Plan. 1.4 Total cost of the proposal over the proposed duration. Total cost of the scheme is Rs Crore and requirement of GBS from Govt. of India is Rs Crore over the implementation period. Planning commission has allocated GBS of Rs 2500 Crores for Feeder Separation works under 12 th Five Year Plan which needs to be enhanced as per proposal. 1.5 Nature of scheme: Central Sector/ Centrally Sponsored/Additional Central Assistance Central Sector 2. Proposal Category 2.1 Please indicate which category the proposal belongs to: (a) Continuing scheme from past Plan periods and included in current Plan period. No (b) New Plan Proposal included in the current Plan period Yes. However, necessary GBS would require enhancement as per proposal. (c) New Plan Proposal not included in the current Plan period No 2.2 If proposal pertains to category 2.1 (a), then please indicate the benefits already accrued and expenditure already incurred. Page 1 of 24

2 2.2(a) Also for proposals belonging to category 2.1 (a),an evaluation report by an independent agency with comments of FA/IFD thereon may be provided along with following details as Annexure to EFC/PIB memo: 2.2(b) If there are changes proposed in the proposal belonging to category 2.1(a), please provide existing provisions and proposed changes against each component in tabular form along with financial implications due to the proposed changes: 2.3 If the proposal pertains to category 2.1 (c), please indicate whether inprinciple approval of Planning Commission has been obtained. 2.4 Please indicate in case of new Centrally Sponsored Scheme or Major change in ongoing CSS, whether States/UTs have been consulted and their consent obtained to implement the scheme with proposed sharing of funds. as proposed scheme is a Central Sector scheme. 3. Justification for the Proposal 3.1 The justification for taking up new / continuing the ongoing proposal may be provided. In rural areas of the country, the agricultural and non-agricultural load (domestic and non-domestic) is typically catered through common distribution network. Availability of power supply in rural areas is erratic in most parts of the country. Besides non-availability of adequate power, common distribution network for agricultural and non-agricultural load is also considered as one of the major constraints for supply of adequate reliable power to rural area. Distribution utilities, to mitigate the gap between supply and demand practise frequent load shedding in rural areas and in the process, non-agricultural consumers are also deprived of supply since they are fed from the same feeder. To overcome this situation, a number of States like Andhra Pradesh, Gujarat, Haryana, Karnataka, Madhya Pradesh, Maharashtra, Punjab, Rajasthan etc. have undertaken capital investment programs to separate the agricultural load from the non-agricultural (household & small commercial-primarily single phase) load in the rural areas. Feeder separation refers to supply of electricity to agricultural consumers and non-agricultural consumers (domestic and non-domestic) separately through dedicated feeders. This arrangement allows the distribution company to selectively control power supply to agricultural consumers as and when needed for effective Demand Side Management (DSM). The separation of feeders helps in flattening of the load curve by shifting the agricultural load to offpeak hours and thus helps in load management. Even though the States are incurring capital expenditure against these kinds of works, a continual infusion of funds is required for ensuring that the feeders remain separated and do not become mixed feeder in due course. Page 2 of 24

3 Besides separation of feeders, strengthening and augmentation of subtransmission and distribution infrastructure is also considered necessary to ensure reliable and quality power supply in rural areas. Further, metering at consumer end as well as at the distribution transformers and feeders is also a vital part in building a framework for energy accounting and identifying high loss pockets and initiating remedial measures towards reduction of losses. Keeping in view the huge capital investment requirement for separation of feeders, strengthening & augmentation of sub-transmission & distribution infrastructure including metering and also considering the poor financial health of the State owned DISCOMs / Power Deptt, it is proposed to extend financial support from Government of India for implementation of scheme. Implementation of scheme would result in improvement in quality & reliability of power supply which in turn would facilitate socio-economic development in rural areas. 3.2 The alternatives that have been considered before firming up the design of the proposal may be stated. (This should also include alternate modes of proposal delivery, e.g. outsourcing, PPP, etc. that have been considered). Distribution of power is a licensed business regulated by the State Electricity Regulatory Commissions. Further, almost all the distribution utilities are owned by the States except for few Private Distribution Companies, which shall not be eligible for financial support under the scheme. Keeping in view the present financial condition of State owned Discom/Dept., the proposed scheme is considered suitable. 3.3 Please state whether the proposal has objectives and coverage which overlap with projects/ schemes being implemented by the same or another agency (Ministry/ Department/ State government). In cases of overlap, please state why the proposal needs to be considered as a separate stand alone effort. There is no overlap with objectives and coverage of other projects / schemes being implemented in rural areas by Govt. of India. However, ongoing activities under RGGVY for providing access to electricity to rural households can be leveraged towards attainment of objectives of the proposed scheme. 4. Proposal Objectives and targets 4.1 The objectives of the proposal may be mentioned. These objectives should flow from the proposal justification. The main objectives of the scheme are as under: To separate agriculture and non-agriculture feeders in rural areas; To facilitate Discoms in the judicious rostering of supply to agricultural & nonagricultural consumers in rural areas; Strengthening and Augmentation of Sub Transmission & Distribution infrastructure in rural areas. Page 3 of 24

4 4.2 The specific targets proposed to be achieved of the proposal may be mentioned. These targets should be necessarily measurable. These should also be monitorable, against baseline data. The baseline may be indicated. Sr. Particulars Target No. 1. No. of feeders to be separated / laid Nos. 2. New Sub-stations 1620 Nos. 3. Augmentation of existing sub-stations 1615 Nos or 66 KV lines Kms 5. Installation of Distribution Transformers 2 Lakh 6. Installation of meters at consumer end / 1,19,10,800 distribution transformers / feeders The above parameters have been arrived at based on estimation. Actual parameters would be finalized based on DPRs to be formulated by the State Discoms/ Power Deptt. and approved by the proposed Monitoring Committee under the scheme. 4.3 The outcomes of the proposal to be achieved should be indicated. These outcomes should be in the form of measurable indicators which can evaluate the proposal on quarterly / half yearly / annual / plan basis. Sr. Expected Outcome No. 1. Improvement in hours of power supply 2. Reduction in peak load 3. Improvement in billed energy based on metered consumption Actual parameters shall be worked out based on DPRs to be approved by the proposed Monitoring Committee under the scheme. 4.4 Briefly explain the objectives of the other programmes / projects undertaken by Ministry / Dept which are in convergence with the objectives of proposed proposal. Ongoing activities under RGGVY for providing access to electricity to rural households can be leveraged towards attainment of objectives of the proposed scheme. 4.5 Please indicate whether the proposal is for current Plan only or will continue in next Plan also. The scheme will continue in next Plan also. 5. Gender Analysis of the Proposal 5.1 Briefly explain the specific objectives of the proposal relating only to women. The proposed scheme is gender neutral. Page 4 of 24

5 5.2 In case the proposal has gender components, please provide the following information in tabular form as shown below. Gender Component Component 1, 2,3 & so on % of total expenditure on this component 6. Proposal design 6.1 Briefly explain the proposal Design. This should include all components of the proposal Scope of works The illustrative list of works proposed to be undertaken in rural areas under the scheme is as follows: Physical separation of HT feeders for Agricultural and non-agricultural consumers Laying of new HT feeders and LT lines Virtual separation of feeders by way of reorientation of existing feeders and creation of other related infrastructure Creation of new Sub stations and augmentation of existing ones Laying of 66 KV and 33 kv lines and augmentation of existing lines. Installation of new distribution transformers including Specially Designed Transformers (SDTs) and augmentation of existing distribution transformers Procurement & installation of meters for feeders, distribution transformers & all class of consumers for new connection and for existing un-metered connections, replacement of faulty meters and conversion of electromechanical to static meters. Relocation of meters & replacement of service cables Laying of Aerial Bunched Cables (ABC) and service lines. Re-conductoring (replacement and up-gradation) of existing HT and LT feeders Completion of optical fibre missing links to connect all the 33 KV or 66 KV grid sub stations under the establishment of National Optical Fibre Network (NOFN). Other specific works for achieving the objectives of the scheme. Above works shall be eligible under the scheme provided proposed scope of works is not covered under any GoI program like R-APDRP/ RGGVY / NEF etc. The projects for which any other grant / subsidy from Government of India has already been received / proposed to be received shall not be eligible under this scheme Estimated cost The estimated cost of the proposed scheme is about Rs crore. Page 5 of 24

6 6.1.3 Eligible Utilities All State owned Discoms and Power Departments shall be eligible for financial assistance under the scheme Formulation of DPR and Project Appraisal Mechanism Discoms will prioritize Strengthening of rural infrastructural works considering specific network requirement and will formulate bankable DPRs (Detailed Project Reports) of the projects for coverage under the scheme. The DPRs shall be recommended by existing State Level Standing Committee (SLSC) constituted for RGGVY programme under the chairmanship of Chief Secretary (Scope of Committee shall be extended to cover Deendayal Upadhyaya Gram Jyoti Yojana) before submission to Nodal Agency. The SLSC shall ensure that there is no duplication of works while recommending the projects to Nodal Agency (REC). The projects shall be appraised and duly recommended by Nodal Agency before approval of Monitoring Committee chaired by Secretary (Power), Ministry of Power, Govt of India Project Management Consultant (PMC) A Project Management Consultant (PMC) shall be appointed by the utility for monitoring and ensuring timely implementation of the project. 100% grant shall be provided by GoI towards expenditure incurred on Project Management Consultant (PMC) as per provision in the scheme Execution Period Projects shall be completed within a period of 24 months from the date of issue of Letter of Award (LoA) by the utility. In case, the State owned Discoms / Power Deptt, are not able to complete the projects within stipulated time period due to circumstances beyond their control, the proposed Monitoring Committee shall be authorized to grant time extension based on merits on case to case basis Nodal Agency for the Scheme Rural Electrification Corporation Limited (REC) shall be the Nodal Agency for operationalization of the scheme. The Nodal Agency will be paid 0.5% of the total project cost as their fee for operationalization of the scheme Supporting/ Enabling activities of Ministry of Power A provision of 0.5% of the total project cost has been kept for the supporting/ enabling activities and associated expenses of Ministry of Power. Page 6 of 24

7 6.1.9 Funding pattern The funding mechanism is proposed as under: Agency Nature of support Quantum of support (Percentage of project cost) Special Category States # Other than Special Category States Govt of India Grant State / Discom Grant 10 5 Contribution Lender (FIs/ Banks) / Loan/ own fund State or Discom own fund Additional Grant from GOI on achievement of Grant 50% of total loan component/ own 50% of total loan component / own milestones based on fund (30%) i.e. fund (10%) of i.e. outcome parameters 15% 5% Maximum Grant by Grant 75% 90% GOI (including additional grant on achievement of milestones based on outcome parameters) Note: 100% grant shall be provided by GoI towards expenditure incurred on activities for bridging the missing links of National Optical Fibre Network (NOFN), Creation of Rural Electrification Data Hub at Rural Electrification Corporation & Project Management Consultant (PMC) as per provision in the scheme. # Special Category States (All North Eastern States including Sikkim, J&K, Himachal Pradesh, Uttrakhand) Tripartite/ Bipartite agreement: Suitable Tripartite agreement shall be executed among REC as Nodal Agency on behalf of Ministry of Power, State Government and Discom to ensure implementation of scheme in accordance with guidelines prescribed under the scheme. Bipartite agreement will be executed in case of State Power departments. Page 7 of 24

8 Release of fund by GoI: The grant support from GoI is proposed to be extended as per following milestones: Tranche no. Conditions for release of grant support by GoI 1 (i) Approval of projects by Monitoring Committee (ii) Bipartite / Tripartite agreement with Discoms, State Govt & Nodal Agency on behalf of MoP. 2 Placement of Letter of Award (LoA) by the utility 3 Utilisation of 90% of grant released by GOI (1st and 2nd Tranche) and 100% release of State/Discom contribution Release of Grant component of GOI 10% 20% 60% 4 After completion of works 10% Additional grant admissible against timely completion of projects i.e. 24 months from date of issue of Letter of Award (LoA) by the utility shall be released on achievement of milestones based on outcome parameters Monitoring Committee The projects shall be approved by Monitoring committee under the chairmanship of Secretary (Power). The committee shall comprise of representative from Ministry of Power, Ministry of Finance, Ministry of Rural Development, Ministry of Agriculture, Central Electricity Authority (CEA) & Planning Commission. Chairman & Managing Director, REC shall be the Member Secretary of the Committee. 6.2 In case the proposal is specific to any location, area and segment of population please state the basis for selection. Details regarding special physical features, technology, etc., may be given Please indicate whether the proposal is secured against natural/ man-made disasters like floods, cyclones, earthquakes, tsunamis, etc. If the proposal involves creation/ modification of structural and engineering assets or change in land use plans, disaster management concerns should be assessed. Not covered in the scope of scheme. Insurance etc. against any such disasters to be dealt by the respective State Government / Discoms. Page 8 of 24

9 6.4 In case of beneficiary oriented proposal, the mechanism for identification of the beneficiary and the linkage of beneficiary identification with UID numbers, on a voluntary / non-mandatory basis, may be indicated. 6.5 Wherever possible, the mode of delivery should involve the Panchayati Raj Institutions and Urban Local Bodies. Where this is intended, the preparedness and the ability of the Panchayats for executing the proposal may be indicated. If exceptions are to be made, the reasons may be explained. Projects under the scheme are to be implemented by the State owned Discoms / Power Deptt Whether the land required for the proposal is in possession of the agency. In case the proposal involves land acquisition or environmental clearances, the specific requirements and the status in this regard may be indicated. Under the scheme, cost of land; if any required; shall be borne by the State Government/Discom. The environment clearances involved, if any, in individuals projects would be dealt by respective State Government / Discom. 6.7 The legacy arrangements after the scheduled proposal duration may be mentioned. In case the proposal creates assets, arrangements for their maintenance and upkeep may be stated. (For example the proposal assets may be taken over and maintained by the State Government/ PRIs, ULBs). State owned Discoms/Power Deptt. are responsible for operation and maintenance of distribution network under their jurisdiction and shall also be responsible for upkeep of the assets created under the scheme. 6.8 Please indicate: Inter-linkages with other schemes mainly in terms of coverage, impact, outcomes, etc. There is no Inter-linkage with other schemes of Govt of India being implemented in rural areas in terms of coverage. However, ongoing activities under RGGVY for providing access to electricity to rural households would supplement the impact and outcomes in positive manner towards attainment of objectives of the proposed scheme. Steps taken towards convergence with other schemes to achieve the intended outcomes may also be stated. Ongoing activities under RGGVY for providing access to electricity to rural households shall be leveraged towards attainment of objectives of the proposed scheme. Steps taken towards convergence in flow of funds from other schemes. Page 9 of 24

10 7. Proposal cost 7.1 Please provide the proposal cost estimate for its scheduled duration along with a break-up of year-wise, component-wise expenses segregated into non-recurring and recurring expenses. COST ESTIMATE (Rs. in cr) SNo. Proposed Works Amount A Item of works proposed for partial funding by GOI 1 Feeder Separation/ New Feeders (16500 Nos. feeders and 24,750 associated works) 2 33 KV/66 KV Line (21900 Ckm) 1,515 3 Sub-station Works 33 KV or 66 KV (1620 new sub-station, 4,045 augmentation of 1615 existing sub-station) 4 LT Infrastructure works (LT lines with bare conductor/arial 5,350 Bunched cables & Distribution Transformers) 5 Metering at Feeders, distribution transformers & Consumers 6,450 end Sub-Total (A) 42,110 B Item of works proposed for 100% funding by GOI 7 Establishing Missing link of Optic fibre (Upto Sub Stations 280 under National Optic Fibre Network-NOFN) 8 Creation of Rural Electrification Data Hub at Rural 10 Electrification Corporation 9 Project Management Consultant 0.5% of total 211 cost of works [0.5% of A] Sub-Total (B) 501 Total Project Cost (A+B) 42,611 C Fee of Nodal Agency and provision for enabling activities for Ministry of Power 10 REC % of total cost of works (A) Provision for MoP for enabling % of total 211 cost of works (A) Sub-Total (C) 422 GRAND TOTAL (A+B+C) Rs 43,033 Crore Page 10 of 24

11 ESTIMATE FOR GBS REQUIREMENT Sl.No Particulars Other than Special Category States Special Category States Total Total Cost of Works proposed for partial funding by GOI Percentage of project cost proposed to be shared by GoI as Grant (including additional 75% 90% - grant on timely completion) Grant Component for works proposed for partial funding by GOI Total Cost of Works proposed for 100% funding by GOI Fee of Nodal Agency and provision for enabling activities for Ministry of Power Total GBS Requirement (3+4+5) YEAR-WISE PHASING OF EXPENDITURE Amount in Rs. Crore Year Expenditure Sub-Total (12th Plan) Sub-Total (13th Plan) Grand Total Say Crore 7.2 In case the land is to be acquired, the details of cost of land and cost of rehabilitation/resettlement may be provided. As indicated in para 6.6 above. 7.3 Estimated expenditure on proposal administration (including expenses on consultants, monitoring, evaluation, IEC, etc.) may be separately indicated. The project administration cost is included in the estimated cost of the scheme given above at Sr Page 11 of 24

12 7.4 The basis of these cost estimates along with the reference dates (it should not be more than six months old) for normative costing may be provided. Please indicate the firmness of the estimates, component wise, with the extent (+ / -) of the expected variation. The estimates have been prepared by CEA in consultation with States, REC & PFC based on assessment of works to be carried out and prevailing cost norms. 7.5 In case the proposal involves payout of subsidy, the year wise and component wise expected outgo, up to the last year of payout, may be indicated. The proposed year-wise plan for release of grant is as below: Amount in Rs. Crore Year Release of Grant Sub-Total (12th Plan) Sub-Total (13th Plan) Grand Total In case the proposal intends to create capital assets, employ specialised manpower or involves other activities that necessitate a Recurring Cost of Capital Expenditure (RCCE) (e.g., maintenance and upkeep costs of assets, salary costs of manpower, etc.) over the lifetime of the asset, such expenditures, on an annual basis, may be indicated in the proposal. Not in the scope of the proposed scheme and all such requirement is to be borne by concerned State owned Discom/ Power Deptt. 7.7 It may also be stated whether the agency which would be assigned this legacy responsibility has been consulted and has agreed to bear the continuing recurring expenditure. (e.g., the State governments may need to incur the maintenance and upkeep costs of assets created under Plan schemes). State owned Discoms/Power Deptt. are responsible for operation and maintenance of distribution network under their jurisdiction and shall also be responsible for upkeep of the assets created under the scheme. 7.8 The cost towards salary/ fees/ emoluments of the proposal human resources as being proposed should be indicated (procedure for seeking approval for human resource requirements is detailed at para-9 below). Page 12 of 24

13 Projects under the scheme will be implemented by State owned Discoms/Power Deptt through awarding the contract, which will take care cost towards salary / fees / emoluments of the human resources. 7.9 The component of the costs mentioned at , that will be shared by the state governments/pri/user Beneficiaries may be indicated. Total Cost of Scheme : Rs. 43,033 Crore Cost to be shared by GOI : Rs Crore Balance Cost to be shared by States / : Rs Crore Discoms 7.10 In the event of fund transfer being made to State Govts / local bodies or other organisations, grants for creation of capital assets may be indicated separately. Total grant amount from Govt. of India for creation of capital assets is Rs Crore. 8. Proposal: Financing 8.1 The source of financing for the proposal may be indicated. In case of proposal already included in the FYP, the specific earmarking may be mentioned. Total cost of the scheme is Rs Crore and requirement of GBS from Govt. of India is Rs Crore over the implementation period of scheme. Balance funds shall be contributed by the States/Discoms from their own resources and loan from FIs. Funding pattern has been detailed in Para above. 8.2 Whether the funding requirements have been fully tied up with Planning Commission may be indicated. The quantum of the Plan allocation may be indicated. Planning commission has allocated Rs 2500 crores (GBS) for Feeder Separation under 12 th Five Year Plan. Draft of EFC memo shall be sent to Planning Commission for enhancement of necessary budgetary support as per requirement of the scheme. 8.3 If there are gaps in the financing of the proposal, the sponsoring agency may indicate how such gaps in FYP as well as the Annual Plans will be addressed. 8.4 If external sources are intended, the sponsoring agency may indicate whether such funds have been tied up. In case firm commitment is not available, alternative plans for arranging funds may be indicated. Page 13 of 24

14 8.5 In case of partial allocation of funds for the proposal, then the components which may be removed / reduced may be indicated. Draft of EFC memo shall be sent to Planning Commission for enhancement of necessary budgetary support as per requirement of the scheme. 8.6 Please provide the following details in respect of project proposal: Debt-equity ratio along with justification. In case of, funding from internal resources (IR), availability of IR may be supported by projections and their deployment on various projects. Please indicate funding tie-ups for loans components both domestic and foreign, along-with terms and conditions of loan based on consent/ comfort letters. 9. Proposal: Human Resources 9.1 In case posts (permanent or temporary) are intended to be created, a separate proposal may be sent on file to Personnel Division of Department of Expenditure. Such proposals may be sent only after the main proposal is recommended by the appropriate appraisal body (SFC, EFC, etc.). Additional manpower will be required for administering the scheme at Ministry of Power. Team of one Director / Dy Secretary, one Under Secretary, one Section Officer, Two Assistants, one PS, one PA and two peons are proposed. Detailed proposal in this regard will be moved after appraisal by EFC. 9.2 In case outsourcing of services or hiring of consultants is intended, brief details of the same may be indicated. It may also be certified that the relevant GFR provisions will be followed while engaging the agency/ consultant In case additional manpower requirement, please indicate the phased requirement over the proposal timeline (i.e. year-wise break-up of the manpower requirement) The proposed additional manpower as indicted above at Sr. 9.1 will be required from approval of the proposed scheme till completion of the scheme. 10. Proposal viability 10.1 In case of proposals which have identified stream of financial returns, the financial internal rate of return may be calculated. The hurdle rate is considered at 12%. Page 14 of 24

15 10.2 In case of proposals where financial returns are not readily quantifiable (typically social development proposals), the measurable benefits/ outcomes may be indicated. Electricity has been recognized as an essential requirement for all facets of our life and considered to be one of the key drivers for economic growth and poverty alleviation. It is a critical infrastructure requirement for the socio-economic development of the country. Supply of electricity in rural areas; besides replacing kerosene which is commonly used as alternate source of lighting in rural areas; it is also expected to generate huge benefits in the area of education, health, employment generation, women empowerment, economic development etc Proposal implementation and monitoring 11.1 Implementing agency (s) may be indicated. State Owned Distribution Companies / State Power Deptt The administrative structure for implementing the proposal may be stated. Usually new structures / entities, etc. are, by and large, to be avoided. In case new structures are intended to be created for administering the scheme, the details of such structures and specific justification for the same may be provided. Such new structure should be proposed only if it is has been established after due analysis, that existing structures cannot be levered for the proposed/additional work. Projects under the scheme will be implemented by the State Owned Distribution Companies / State Power Deptt The completion schedule of the proposal indicating timelines of activities should be provided in PERT/Bar Chart along with critical milestones. Sl Major milestones No. 1. Receipt of approval of the CCEA 'Zero' date 2. Preparatory activities - formulation of detailed guidelines by Nodal agency in consultation with stakeholders and circulation to all concerned 3. Preparation of DPRs by the Discoms/Power Deptt. and submission to State Level Committee for its recommendations to REC for sanction under scheme 4. Appraisal by REC and submission of recommendations to the Monitoring Committee and Sanction of DPRs by the Monitoring Committee 5. Award of contracts by the Implementing Agencies Time frame for completion /Target date Within 2 months from the date of receipt of approval of the CCEA Within 3 month from the date of circulation of guidelines by REC Within 1 month from the date of receipt of recommendations by the State Level Committee Within 06 months from the date of sanction of projects by the Monitoring Committee 6. Implementation of projects Within 24 months from the date of award Page 15 of 24

16 11.4 Mode of implementation: Departmental/ Contract/ Turnkey contract/ EPC/ PPP, etc. with justification may be given. To be implemented by State owned Discoms/Power Deptt Nodal officer identified / appointed for being directly in charge and overseeing progress of the proposal may be indicated. Details about his status, past experience in executing similar proposals and balance tenure left for steering the proposal may also be mentioned. He/ She should normally be appointed for entire duration of the proposal. Rural Electrification Corporation Limited (REC) shall be the Nodal Agency for operationalization of the scheme The monitoring framework preferably on MIS for the proposal may be indicated. The arrangements for audit/social audit of the proposal may also be stated. At project level, the State owned Discom/Power Deptt. themselves along with PMC monitors implementation of individual projects. At State level, a State Level Standing Committee headed by the Chief Secretary of the State shall monitor progress of implementation of projects. REC, nodal agency of the scheme, shall also periodically review progress of implementation through its project offices and Corporate Office. The proposed Monitoring Committee under the Chairmanship of Secretary (Power), Government of India consisting of representatives from other Ministries shall also monitor implementation of the scheme. The audit of the scheme will be done as usual by the government audit team. 12. Proposal sensitivities/uncertainties 12.1 Any foreseeable constraints/ uncertainties which can affect the technical design, costing and implementation of the proposal may be indicated. The scheme involves execution of electrification works in rural area spread across various parts of countries at distant locations which require skilled/semi-skilled manpower and transportation of material like poles, conductor, transformers etc.. Mobilization of adequate manpower and sometimes transportation of material to distant locations may be difficult. Any delay in procurement process may delay implementation of projects under the scheme and result in cost overrun. Further the financial health of Discoms/ Power Deptt. to purchase power to cater rural demand & commitment of states in providing reliability and quality power plays a significant role. Since power is a regulated commodity and the scheme involves a part of funding as loan, approval of regulator for capital investment shall be required. Page 16 of 24

17 12.2 The likely impact of these constraints/uncertainties on the proposal parameters may be stated. In particular, the sensitivity of the proposal cost, proposal schedule and proposal viability towards the possible constraints/ uncertainties may be mentioned. Delay in implementation may result cost overrun. 13. Mandatory approvals / clearances: The details regarding the requirement of mandatory approvals / clearances of various local, state and national bodies and their availability may be indicated. 14. Consultations with the Public, State Governments, External Research Agencies, Think Tanks, etc To the extent possible and practicable, such consultations may be done by the Administrative Ministries. The draft Proposals may be placed on the web site of the sponsoring Ministries and comments invited from the general public. The draft proposals may be formulated / finalized taking into account such comments. Details in this regard may be indicated in the EFC /PIB memo. Draft EFC memo will be circulated for inter ministerial consultation. 15. Concurrence of Financial Advisor 15.1 Comments / Concurrence of Financial Adviser may be indicated along with reply of the Administrative Ministry. Comments of Financial Advisor and reply of the Ministry of Power are enclosed at Annexure-I. (Page 18 to 24). 16. Approvals: 16.1 Please indicate the specific points on which approval of EFC / PIB is sought. The approval is solicited for the following: a. Launch of Deendayal Upadhyaya Gram Jyoti Yojana (DUGJY) with total scheme cost of Rs. 43,033 Crore b. Allocation of GBS for Rs Crore for the scheme. (B.N. Sharma) Joint Secretary to the Government of India Tel. No.: b.narayan@nic.in Page 17 of 24