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The DDUGJY scheme, launched in December 2014 to strengthen the rural power distribution network, provide last mile connectivity and electrify un-electrified households, had a timeline of 24 to 30 months. Against the approved outlay of ₹75,893 crore, the scheme was closed at a cost of ₹64,495 crore.
The Saubhagya scheme, launched in October 2017 to provide electricity connections to all un-electrified households, was to be completed by March 2019. The sanctioned outlay of this scheme was ₹16,320 crore but it was capped at ₹9,246 crore. Additional infrastructure fund of ₹14,183 crore under Saubhagya closed at ₹11,373 crore.
Targets missed, achievements exaggerated
According to the audit, around 300 lakh non-electrified households were estimated to be covered under Saubhagya. The scheme dashboard claimed 100% achievement by March 2019, citing electrification of 262.84 lakh households. However, the CAG found that only 151.60 lakh households had actually been electrified by March 2019, which was only 57.67% of the target. By March 2022, this number increased to 174.36 lakh families, which is still only 66.34% of the estimated target.
While 25 states claimed full achievement between November 2018 and March 2019, seven states reported 19.10 lakh un-electrified households as of March 31, 2019. The audit also said that 11.64 lakh households remained un-electrified as of March 30, 2021.
In rural areas, 4.04 crore un-electrified households were to be electrified by March 2019, with an additional 19 lakh households. However, only 2.86 crore households were electrified by the deadline, including 4.05 lakh households electrified under DDUGJY.
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The audit highlighted discrepancies in Uttar Pradesh, where 46.31 lakh households were reported to be un-electrified in November 2017. While the state had announced complete electrification by March 2019, only 21.29 lakh households were actually electrified, which was only 45.98% of the initial estimate.
Duplicate Claims, Contractor Benefits
The CAG found instances of duplicate claims by contractors, with 16,728 families in the two states receiving connections under both DDUGJY and Saubhagya. The audit also revealed cases of undue benefits given to contractors, payments made without completion of work and double payment of ₹2.24 crore for the same work.
Network reinforcement reduced
Despite the implementation of both schemes, the audit said problems of inadequate and unreliable power supply persist in rural areas. The objective of DDUGJY was only partially achieved, as the allocated budget outlay was inadequate to meet the objectives of the scheme.
Rural Electrification Corporation (REC), the nodal agency of DDUGJY, has significantly reduced the cost of strengthening the system. The restrictions imposed against the demand of Rs 44,821 crore from 19 states and two union territories ranged between 14.13% and 99.05%.
Feeder separation work also remained incomplete. As of March 2022, only 7,833 agricultural feeders were quarantined against 9,019 approved feeders and 16,500 sanctioned feeders.
delay in states
The audit pointed out widespread delays under DDUGJY. Out of 605 projects in 24 states, 81.65% i.e. 494 projects were delayed in allocation. Completion of 555 projects or 91.74% was delayed in 27 states and three union territories. Of these, 263 projects in 19 states and three union territories saw delays of more than 24 months.
The CAG report raises serious questions on the credibility of electrification claims and highlights systemic weaknesses in the planning, implementation and monitoring of the government’s two flagship rural power schemes.