Government Schemes and Programs

Ministry of Power – Schemes and Programs

Ministry of Power

About Ministry

  • The Ministry of Power started functioning independently with effect from 2nd July, 1992. Earlier it was known as the Ministry of Energy sources. 
  • The Ministry is concerned with perspective planning, policy formulation, processing of projects for investment decision, monitoring of the implementation of power projects, training and manpower development and the administration and enactment of legislation in regard to thermal, hydro power generation, transmission and distribution.
  • The ministry is charged with overseeing electricity production and infrastructure development, including generation, transmission, and delivery, as well as maintenance projects. The ministry acts as a liaison between the central government and state electricity operations, as well as with the private sector. The ministry also oversees rural electrification projects.
  •  The Ministry of Power is responsible for the Administration of the Electricity Act, 2003, the Energy Conservation Act , 2001 and to undertake such amendments to these Acts, as may be necessary from time to time, in conformity with the Government’s policy objectives.

Government Schemes of Ministry of Power, SAUBHAGYA, UDAY, GRAM JYOTI YOJANA, NATIONAL LED PROGRAMME, SAATHI etc., Complete Notes on Government Schemes....



    • To achieve universal household electrification in the country by 31st March 2019.
    • Providing Solar Photovoltaic (SPV) based standalone systems for non-electrified households in remote and inaccessible areas.
    • Un-electrified households in –
        1. Rural areas
        2. Remote and inaccessible areas
        3. Economically poor households in urban areas (Non-poor urban households are excluded from this scheme).
    • All DISCOMS including Private ones
    • Skilled manpower
Salient Features
    • Rural Electrification Corporation Limited (REC) is the nodal agency for implementing the scheme.
    • The scheme envisages to provide last mile connectivity and electricity connections to all remaining households in rural as well as urban areas.
    • Funding Pattern: 60% by central grants, 30% by bank, loans and 10% by states.
    • All DISCOMs including Private Sector DISCOMs, State Power Departments and RE-Cooperative Societies shall be eligible for financial assistance under the scheme in line with DDUGJY.
    • Government will provide free electricity to all households with atleast one deprivation under Socio-Economic and Caste Census (SECC) data 2011 in rural areas and economically poor households in urban areas, while others will be charged 500 Rs per household in 10 equal instalments with the bill.
    • Electricity connection to households includes –
          • drawing a service cable from the nearest electricity pole, installation of energy meter, wiring for a single light point with LED bulb, mobile charging point
    • For un-electrified households located in remote & inaccessible areas
          1. The households located in remote and inaccessible areas would be provided with Solar Photovoltaic (SPV) based standalone systems with LED lights, fan, power plug etc.
          2. The beneficiary household will get five LED lights, one DC fan, one DC power plug. It also includes the Repair and Maintenance (R&M) for 5 years.
    • Recently, Government has announced 100 crore rupee award for states that would complete the household electrification early under the SAUBHAGAYA scheme. Apart from discoms, employees would also collectively get 50 lakh rupees award for completing the task of electrifying households.



  • Introduced in November, 2015 under Ministry of Power.
    • To improve the financial health and operational efficiency of India’s debt ridden power distribution companies (discoms).
    • In long term – affordable and accessible 24×7 Power for All.
Salient Features
    • It is the financial turnaround and revival package for electricity distribution companies of India (DISCOMs) with the intent to find a permanent solution to the financial mess that the power distribution is in.
    • It aims to reduce the interest burden, reduce the cost of power, reduce power losses in Distribution sector, and improve operational efficiency of DISCOMs.
    • State governments have to take over 75% of their debt and pay back lenders by selling bonds. For remaining 25%, discoms issue bonds.
    • It has ambitious target of making all state DISCOMs profitable by 2018-19. The outcome will be measured through two indicators i.e. Reduction of AT&C loss to 15% by 2018-19 and Reduction in gap between Average cost of Supply and Average Revenue Realised to Zero by 2018-19
    • This is through four initiatives –
        1. improving operational efficiencies of DISCOMs;
        2. reduction of cost of power;
        3. reduction in interest cost of DISCOMs;
        4. Enforcing financial discipline on DISCOMs through alignment with state finances.
    • States shall take over 75% of DISCOM debt as on 30 September 2015 over two years i.e 50% of DISCOM debt shall be taken over in 2015-16 and 25% in 2016-17.
    • Government of India will not include the debt taken over by the states as per the above scheme in the calculation of fiscal deficit (for FRBM) of respective states in the financial years 2015-16 and 2016-17. The scheme availability period has expired on 31-03-2017.
    • States will issue non-SLR including State Development Loans (SDL) bonds in the market or directly to the respective banks / financial institutions (FIs) holding the DISCOM debt to the appropriate extent.
    • DISCOM debt not taken over by the state shall be converted by the banks / FIs into loans or bonds.
    • West Bengal and Odisha are the only two states that have not joined the scheme. Odisha had joined earlier but left. Overall 26 states have joined the scheme.



  • Flagship programme to provide 24X7 power supply to rural areas under Ministry of Power.
    • 24×7 uninterrupted electricity supply to each rural household across the country by 2022.
    • Electrifying all villages and habitations as per new definition
    • Providing electricity Connection to Below Poverty Line (BPL) families free of charge
Salient Features
    • According to DDUGJY website, 99% of census villages have been electrified by March, 2019.
        1. Separation of agriculture and non-agriculture feeders facilitating judicious rostering of supply to agricultural & non- agricultural consumers in the rural areas;
        2. Strengthening and augmentation of sub-transmission & distribution (ST&D) infrastructure in rural areas, including metering at distribution transformers, feeders and consumers end
        3. Rural electrification, as per CCEA approval for completion of the targets laid down under RGGVY by subsuming RGGVY in DDUGJY and carrying forward the approved outlay for RGGVY to DDUGJY;
    • The central government provides 60% of the project cost as grant, the state power distribution companies (discoms) raise 10% of the funds, and 30% is borrowed from financial institutions and banks.
    • Micro grid and off grid distribution network will also be strengthened.
    • Rural Electrification Corporation is the Nodal Agency for implementation of DDUGJY.
    • Ministry has also launched GARV-II app to provide real time data about rural electrification in all villages of the country.



  • Launched in January 2015.
  • Scheme is being implemented by Energy Efficiency Services Limited (EESL), a Public Energy Services Company under Union Ministry of Power.
  • The programme was launched in 2005 with the aim of promoting use of the most efficient lighting technology at affordable rates. This programme has two components –
      1. Unnat Jyoti by Affordable LED for All (UJALA) – providing LED bulbs to domestic consumers with a target to replace 77 crore incandescent bulbs with LED bulbs.
      2. Street Lighting National Programme (SLNP) – to replace 1.34 crore conventional street lights with smart and energy efficient LED street lights by March 2019.

Unnat Jyoti by Affordable LED for All (UJALA)

      • To promote efficient lighting
      • To reduce electricity bills and help preserve environment
Salient Features
      • It aims to promote efficient use of energy at the residential level; enhance the awareness of consumers about the efficacy of using energy efficient appliances and aggregating demand to reduce the high initial costs thus facilitating higher uptake of LED lights by residential users.
      • LED bulbs are provided to domestic consumers with a target to replace 77 crore incandescent bulbs with LED bulbs.
      • EESL (Energy Efficiency Services Ltd.) enables domestic households to procure LED lights at an affordable price of Rs. 10/- each and the balance on easy instalment from their electricity bill.
      • Bachat Lamp Yojana (offered CFL at the cost of incandescent bulb) was replaced by DELP Scheme (Domestic Efficient Lighting Program- provided LED bulbs). This scheme is now called as UJALA.

Street Lighting National Program

      • To replace India’s 14 million (1.34 crore) conventional street lights with Smart LED variants by 2019.
Salient Features
      • It is world’s Largest Street Light Replacement Programme.
      • EESL enables municipalities to replace conventional lights with LEDs at no upfront cost.
      • The balance cost is recovered through the municipalities by monetising the energy savings.
      • ULB contracts are typically of 7 years duration, where a minimum energy saving (of typically 50%) is guaranteed. Also, free replacements and maintenance of lights at no additional cost is done by EESL.



    • To provide quality and reliable 24×7 power supply in the urban area.
Salient Features
    • The scheme provides for
        1. strengthening of sub-transmission and distribution networks in urban areas;
        2. metering of distribution transformers/feeders/consumers in urban areas; and
        3. IT enablement of distribution sector and strengthening of distribution network.
    • Financial assistance is provided to all Discoms (including private ones).
    • Maximum grants provided by GoI to the states under this scheme is 75% (90% for special category states).
    • The projects under the scheme shall be formulated for urban areas (Statutory Towns) only.
    • PFC (Power Finance Corporation Ltd) is the nodal agency.



    • To increase efficiency of small and medium Powerloom units through energy and cost savings.
    • Jointly implemented by EESL and the office of the Textile Commissioner on a pan-­India basis.
Salient Features
    • A joint initiative of Ministry of Power and Ministry of Textiles
    • Energy Efficiency Services Limited (EESL), would procure energy efficient Powerlooms, motors and Rapier kits in bulk and provide them to the small and medium Powerloom units at no upfront cost.
    • EESL will be repaid over a period of 4 to 5 year in instalments through resulting energy and cost savings by the owner.



    • To provide the consumer an informed choice about the energy saving and thereby the cost saving potential of the relevant marketed product.
Salient Features
    • It has been formulated by the Bureau of Energy Efficiency (BEE).
    • It targets display of energy performance labels on high energy end use equipment & appliances and lays down minimum energy performance standards.
    • It has been developed in a collaborative and consensus driven approach with active participation from all the stakeholders.
    • It has two categories of appliances for the ratings –
        1. Mandatory Appliances for the Star rating are- Air Conditioners, Frost free Refrigerators, Colour T.V, Florescent Lamps etc.,
        2. Voluntary appliances are Induction motors, Pump sets, Ceiling Fans, Computers etc.
    • Any electrical appliances can avail star rating on a scale of 1 to 5 based on test report from NABL or equivalent labs subsequent to scrutiny by the BEE.





Objectives & Features


MERIT (Merit Order Despatch of Electricity for Rejuvenation of Income and Transparency) web portal



  • It has been developed by Ministry of Power in association with Power System Operation Corporation (POSOCO) and Central Electricity Authority.
  • It displays extensive array of information regarding the merit order of Electricity procured by State(s) such as daily state-wise marginal variable costs of all generators, daily source-wise power purchases of respective states/UTs with source-wise fixed and variable costs, energy volumes and purchase prices.
  • It provides opportunity to states for improving their power purchase portfolio.
  • Benefit –
      • Information available in the Portal will help State Discoms to optimize their power procurement in more efficient way leading to lower cost of power to consumers
      • Since information will be available to all consumers on continuous basis it will create pressure on utilities for continued efficiency.

International Symposium to Promote Innovation &
Research in Energy Efficiency (INSPIRE) – 2018



  • It is an International Conference that brings together various stakeholders and provides a platform for energy efficiency community to discuss energy efficiency policies, market transformation strategies, emerging technologies, delivery and business-model driven transformations.
  • It was recently held in India and is organised by Energy Efficiency Services Limited (EESL) and World Bank.
  • To support investments in new, innovative and scalable business models, EESL and Asian Development Bank (ADB) signed an agreement for a Global Environment Facility (GEF) grant of USD 13 million to establish an Energy Efficiency Revolving Fund (EERF).

URJA (Urban Jyoti Abhiyan) App



  • The app is developed by Power Finance Corporation on behalf of Ministry of Power for Urban Power Distribution Sector to enhance consumer connect with the Urban Power Distribution sector by providing information of IT enabled towns on important parameters which concern the consumers like outage information, timely release of connections, addressing complaints, power reliability etc.
  •  It focuses on enhancing consumer connect by way of” Ranking” of towns on various parameters related to consumers in a transparent manner.

National Power Portal (NPP)



  • It is a centralized platform for collation and dissemination of Indian power sector information, (through GIS enabled navigation and visualization chart windows) for generation, transmission and distribution of power in India.
  • NPP Dashboard would also act as the single point interface for all Power Sector Apps launched previously by the government like TARANG, UJALA, VIDYUT PRAVAH, GARV, URJA and MERIT.

Payment Ratification and Analysis in Power procurement


  • A Web portal and an App for bringing Transparency in Invoicing of generators.




  • It is Energy Conservation Building Code for Residential Buildings (ECBC-R).
  • It prescribes minimum standards for building envelope designs with the purpose of designing energy efficient residential buildings.
  • Building envelope – consists of walls, roof, and fenestration (openings including windows, doors, vents, etc.)
  • Design of building envelope influences heat gain/loss, natural ventilation, and day lighting, which in turn determines indoor temperatures, thermal comfort, and sensible cooling/heating demand.



To read and learn about Government Schemes & Programs related to other Ministries, Click Here(Notes on all Government Ministries Schemes and Programs)

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