Executive Summary Project code 2011ER01
Executive Summary of RGGVY Evaluation
Prepared for Rural Electrification Corporation Ltd
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Contents Introduction ............................................................................................................................................ 5 Background ......................................................................................................................................... 5 Methodology....................................................................................................................................... 5 Study State and Districts ..................................................................................................................... 6
Analysis ................................................................................................................................................... 7 Recommendations ................................................................................................................................ 10 Annexure – I ...................................................................................................................................... 12 Annexure – II ..................................................................................................................................... 13 Annexure – III .................................................................................................................................... 15
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Introduction Background The study aims to identify the challenges/ bottlenecks in the effective and efficient implementation of RGGVY programme at various levels of implementation and to suggest policy interventions that may help in streamlining the programme execution.
Methodology Apart from central and state government, the programme implementation involves various agencies like the distribution utility, the central public sector undertaking (CPSU), the turn key contractors, Panchayati Raj institutions, franchisees, DDG developers, and the districts level committees constituted. Appreciating that the study would involve extensive discussion with various stakeholders and also requires analysis of the implementation at ground level, REC identified five states for the study namely Bihar, Jharkhand, Orissa, Tripura and West Bengal. Further, districts and villages in each state were also identified by REC. This study requires collection of primary and secondary data. The methodology for data collection is given below. Secondary data collection: Secondary data related to the study would include previous studies on the RGGVY implementation, studies conducted on specific aspects of RGGVY implementation e.g. franchisee evaluation, TIER – I and TIER – II evaluation reports carried for the identified villages/ districts, DPRs for the study districts, physical and financial targets achieved, consumer category wise end tariff, subsidy provisions if any, made by the state government for enabling supply to subsidised consumer categories, state government charter on supply hours etc. Primary data collection (quantitative and qualitative) Quantitative data: Quantitative data, including historical data would be collected from various sources such as the distribution companies operating in the study districts, franchisee, CPSUs, REC, and other stakeholders.. This data would be unpublished data related to the implementation of RGGVY in the study village/ districts, network development & its maintenance, working of franchisee, consumer issues, DDG generation within the study states etc. TERI professionals would also be visiting all the villages identified for the study to undertake stakeholders consultations and to assess the network developed under the programme Stakeholder consultations: All stakeholders involved in the execution of the programme would be identified. This will be followed by formal/ informal interviews, discussions, focused group discussions1 (FGD), and focused group interviews (FGI).
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FGD is a qualitative method to obtain information on concepts, perceptions and ideas of the group. It is a group discussion of approximately 6 - 12 persons guided by a facilitator, during which group members talk freely and spontaneously about a certain topic.
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While carrying FGD and FGI at village level care would be taken to have representation of all strata of the society including APL (above poverty line) and BPL consumers to capture their perception on electrification of villages/ households and difficulties being faced by them in availing services. Interactions will be held with Panchayati Raj Institutions to understand their existing role in rural electrification and to take their views on involvement of community in generation (through DDG) and distribution of electricity. Details interview guide for all the stakeholders has been developed. The qualitative and quantitative data collected during the study would be studied to understand the bottlenecks in the programme implementation mechanism. Based on the inputs gathered during the process of study from various stakeholders, and based on TERI’s experience and expertise in rural electrification detailed policy interventions required to meet the objective rural electrification under RGGVY would be prepared and presented to REC.
Study State and Districts The study was carried in 5 state covering 25 districts as indicated belowTable 1: State and districts of the study State Districts Bihar Banka, Gaya, Mungare, Muzaffarpur, Sitamarhi, Siwan Jharkhand Dumka, Giridi, Latehar, Paschim Singbhum, Sahibganj Orissa Baleshwar, Bhadrak, Chenkanal, Gajpati, Keonjhar, Rayagada
Tripura West Bengal
Dhalai, South Tripura, West Tripura, Bankura, Dakshin Dinajpur, Medinipur, Puruliya, Uttar Dinajpur
A total of 125 villages across these districts were studied
Analysis
Notification of Rural Electrification Plan
RGGVY programme has helped to speed up the formulation and notification of the Rural Electrification (RE) policy by the State Governments. In accordance with the RGGVY guidelines RE plan has been notified by all the state governments except Bihar. Bihar is in the process of finalising its RE plan. The dates of notification for all other states are given table 1 of in Annexure - I.
The progress of village electrification w.r.t approved DPR (including revised DPR, if any) and as per definition of village electrification in terms of coverage, quality of coverage
BPL connections: The number of BPL connections issued differ from the number envisaged in the DPR (or RCE wherever applicable). This is indicated in fig 1 of Annexure – II. Barring West Bengal, in all study states, the number of BPL connection issued are less than the number envisaged in DPR. DTR capacity and numbers: The DTs installed (number and capacity) also differs due to difference in BPL connections issued as mentioned above. Figure 2 and 3 of annexure II provides the statewise number and capacity of DT installed. Electrification of Public places: During study it was observed that access has been provided to almost all public places of the villages where network development work has been completed. However, connections have been issued only for a limited number of public places. The same has been indicated in figure 4 of Annexure - II. The low level of electrification of public places is due to lack of awareness among the villagers, including progressive villagers, about the process of availing connection for the public places.
Actual implementation schedule till the last milestone vis-a-is standard implementation schedule and comments on slags, if any
Delays in work execution have been observed in some districts in all the states. In some cases, delays in asset handover were also observed. Major causes of delay in work execution include: 1. Lack of skilled man power to carry work on ground level during initial phase of RGGVY implementation. 2. Right of way issues in villages 7
3. Location of many RGGVY villages in remote areas and LWE areas 4. Delay is receiving land for the construction of substations Further, the PIAs of some of the study districts reported that work in those study villages started in latter part of time allotted for work execution.
Duration of electricity supply per day in the village / habitation electrified under RGGVY
The electricity supply in the RGGVY villages varied across the states and also within the states. The villagers, during FGD in Tripura, reported average supply of 22 hrs and 3 hrs of average supply during peak. On the other hand in Bihar the villagers indicated an average supply of 4.7 hrs and 0.45 hrs of average supply during peak. Average hours of supply and supply in peak hours are given in figure 5 of Annexure - II.
APL connections in the RGGVY village and augmentation of village distribution infrastructure, if any.
After introduction of RGGVY, approximately 67.3% of APL consumers in Tripura and 45.7% in West Bengal had been electrified. On the other hand, Bihar and Jharkhand had only 2.4% and 12.1% of APL consumers were electrified as indicated in figure 6 of Annexure – II. Complementary state schemes aimed to increase the density of connection in villages have helped Tripura and West Bengal to increase APL connections at village level.
Issue of electricity bill to new connections and bill payment by households
During FGD villagers of West Bengal and Tripura reported regular bill delivery while villagers in Bihar, Jharkhand and Orissa reported irregular bill delivery. Further, it was observed that the villagers in West Bengal and Tripura regularly pay the bill. However, bill payment is almost nil in case BPL consumers of Bihar, Jharkhand and Orissa. A detail of frequency of bill delivery is given in table 2 of annexure I. .
Instances of dis-connection of BPL connections released under RGGVY, if any.
No instances of disconnection of BPL meters were reported by the utility in the study villages in Bihar, Orissa and Tripura. But in Jharkhand (three) and West Bengal (10 in Purulia) disconnections have been reported.
Franchisee in distribution management:
In all study states except Bihar franchisee (as per RGGVY guidelines) has not been implemented. However some activities like bill delivery has been outsourced mainly to SHGs in those states. Bihar has recently shifted to franchisee models. Though so far there has been low interest from potential entrepreneurs. In two study villages of Bihar franchisee were reported.
Socio-economic impact of village electrification under the scheme. In Tripura and West Bengal some small commercial activities have come up because of availability of electricity. In West Bengal and Bihar some students report extended study hours at night due to electricity supply. In West Bengal, Tripura and Jharkhand, villagers expressed increased sense of outdoor safety.
Provision of revenue Subsidy made by the State Government for BPL consumers.
No direct tariff subsidy has been provided to the RGGVY connected consumers by the state Governments. However, State Electricity Regulatory Commission has cross subsidized the tariff of BPL consumer category.
Availability of extra power in the State to meet the need of newly electrified villages.
Bihar and Jharkhand need to augment availability of electricity to meet the demand from rural consumers. In West Bengal and Tripura, the supply is satisfactory.
Role and responsibility of various stakeholders
The role and responsibility of various stakeholders and the extent of achievement of these roles has been indicated in Annexure – III
Availability of backward linkage to the grid network
All villages connected have availability of backward linkage to the grid network.
Quality and quantity of material supply as also quality of workmanship
During field visit it was observed that the number of BPL connections and the transformation capacity installed in the village are as per the data provided by the PIA. However, in most BPL households, it was observed that the meter board and the incandescent bulb board have been placed together at either outside or inside the house.
Preparation of DPRs
There is scope for better preparation of DPR provided accurate list of BPL consumers is made available and the staffs involved in work implementation is given sufficient training. 9
Recommendations Implementing DDG in grid connected areas
The DDG guidelines should be modified to encourage development of DDG projects in grid connected areas, on viability gap funding (VGF) basis, in order to augment electricity availability in the newly developed infrastructure. Further, operational framework should be developed to encourage electricity distribution franchisee to take up DDG activities. This would help in attaining viability for both franchisee and DDG business and would ensure better service delivery to rural consumers. Monitoring of programme and role of local bodies
The state Governments should focus on operationalizing district wise DEC and should clearly define its role and responsibilities. DEC could be helpful in resolving local level issues hampering the pace of electrification. Placing the name of DEC members, along with the MoM of mandated quarterly meetings, would increase transparency in execution of the programme. Involvement of village community, through panchayat, in electrification could help to resolve various issues related to right of way, acquisition of land for the development of PSS and would develop feeling of ownership for the distribution network. Capacity building of members of DEC as well as village head on various provisions/ components of RGGVY and their role & responsibilities under the programme should be undertaken for smooth implementation of the programme. The programme provisions and role of local stakeholders should also be advertised in local newspaper in vernacular language for all stakeholders including beneficiaries of the programme. DEC could also be helpful in coordinating large scale awareness generation programmes at local level on the provisions of RGGVY and roles & responsibilities of various stakeholders with the help of training institutes and NGOs. Overcoming challenges in implementing franchisee
Rapid implementation of franchisee, with larger role in distribution of electricity and maintenance of distribution network, could help offset man power shortage in rural areas. However, various studies clearly indicate that the success of franchisee depends, besides other factors, on the level of hand holding by the utility. The state Governments should develop an institutional and operational framework which provides proper handholding to the franchisee for its rapid implementation. Further, it is suggested that In the areas with low metered connection density and high commercial losses, revenue based collection franchisee should be implemented. With the development of baseline figure over a period of three years, the franchisee should be graduated to higher franchisee model i.e. IBF. IBF should also be implemented in areas with high technical losses and high density of metered connections. Encouraging APL connections
While RGGVY has been very successful in connecting BPL rural household to the distribution network, it is recommended that mechanism be developed to connect APL households with the
grid. The key task should be to increase the overall household connection level (both APL and BPL) at a rate higher than the rate of increase of household in the country. Designing robust network
The DPR format developed under RGGVY helps to capture various parameters required for adequate development of distribution network, but it appears that the PIAs have not followed it completely. The DPR should capture the prospective BPL and APL load so as to develop a robust & adequate distribution network. The accuracy of the DPR depends on the accuracy of the electrification statistics provided by the sate government. If revised DPRs are prepared for intensive electrification, care should be taken to make available accurate electrification statistics at the village level. If required, village level survey should be undertaken before the approval of the DPR, so that the network developed is technically robust.
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Annexure – I Table 1: Date of notification of RE plan by the states Name of State Orissa West Bengal Tripura Jharkhand Bihar
Notification Date June, 2009 September, 2008 January, 2010 April. 2009 Under formulation
Table 2: Billing frequency and BPL disconnection is study states States
First bill
Billing Frequency
BPL Disconnection
Orissa
Irregular
Irregular
Nil
Tripura
2 – 3 months
Monthly
Nil
WB
2 - 4 month
Quarterly
10
Bihar
2 - 6 months
Irregular
Nil
Jharkhand
4 - 6 months
Irregular
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Annexure – II 3000 DPR 2500
Actual electrified
2408
2208
2000 1432
1500
1078 1000
868 822
665 598
722
826
500 0 Bihar
Jharkhand
Orissa
West Bengal
Tripura
Figure 1: Number of BPL connections in study villages 90
1600
DTR No
79
80
1400
70
70
49
50
1413 1279
1200
63
60
DTR Capacity 1267
48
51
1000
48 39
40
851
800
651685
514
600
30
22
25
780 445 391
400
20
200
10 0
0 Bihar
Jharkhand
Orissa
DPR
West Bengal
Tripura
Actual
DPR
Figure 2: Number of DTRs installed
Figure 3: Capacity (kVA) of DTRs installed
70 60
59 59
57
Total
Access
Energised
48
50
40 40 40
34 34
30
20 20
8
10
11 11 6
8 3
0 Bihar
Jharkhand
Orissa
Actual
West Bengal
Figure 4: Status of electrification in study states
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Tripura
25
22.03
20.6 20 16 15 10 5.86
4.7
5
0.46
0.45
3.06
2.4
1.4
0 Bihar
Jharkhand
Orissa
Avg supply
West Bengal
Tripura
Avg Peak supply
7000
6141
Figure 5: Average hours of supply and average hours of supply during peak hours
6000
Actual
Electrified 3350
5000
2254
4000
688
575 279
123
146
1000
1016
2000
1505
3000
0 Bihar
Jharkhand
Orissa
West Bengal
Figure 6: APL electrification in study states
Tripura
Annexure – III Stakeholders Central
Roles and responsibilities
Status/ Observation
Framing and notifying policy for RE
RE formulated and notified
Sanctioning projects through the monitoring
Projects sanctioned
Government committee Monitoring the programme
The programme being monitored at regular interval
State Government
Formulation and notification of Rural electrification
Formulated and Notified except
Plan within 6 months from the launch of RGGVY
Bihar
scheme Ensuring parity in hours of supply in rural and urban
Parity in supply is observed except
areas
Bihar and Jharkhand (due to shortage of power within the state)
Rural
Making provision for revenue subsidies to the State
No tariff subsidy for BPL consumers
Utilities, if required
is provided by state government.
Issuing guidelines to States for preparation of DPR
Guidelines issued
Assisting States in preparation of DPRs and of RE
CPSUs services made available for
plans by appointing consultants or CPSUs
the preparation of the DPRs.
Scrutiny of DPRs to ensure compliance with RGGVY
DPR scrutinised as per the
guidelines and with directives of Monitoring
guidelines. However, there is scope
Committee
of better scrutiny of the DPR
Placing DPRs for approval before the Monitoring
Being carried out as mandated
electrification Corporation
Committee Overall monitoring of programme i.e. from invitation
Monitoring of the programme being
of tenders to final completion and hand over to the
carried as per the guidelines
utility; Preparation of model tender documents for the use of
Already achieved
utilities Preparation of specifications for various equipment to be used in the programme
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Already achieved
Stakeholders
Roles and responsibilities
Status/ Observation
Appointment of agencies to ensure quality control;
Agencies appointed on time
Coordination MNRE and Energy Development
Already identified. Being revised if
Agencies in States for identification of remote villages
required.
for DDG implementation Implementation and monitoring of the franchisees
Capacity building programme of
development (capacity building) programme
franchisee undertaken.
Ensuring of appointment of franchisees by utilities in
Though efforts are being made
all project villages
franchisee still not implemented in all study villages.
Concurrent Evaluation of the scheme by independent
Being undertaken
agencies; Converting grant to loan if programme not
Not achieved, even though the state
implemented as per the guidelines
has failed to implement franchisee in all RGGVY villages
PIA
System Planning
Scope for better project planning. Evident due to delays in project completion
Procurement of goods and services
Delayed due to various reasons
Construction/ implementation/ commission
The delay in the work execution has been observed
State Power Utilities
Formulation of DPRs/ Providing data for formulation
While data has been provided for
of DPRs
preparation of DPRs, there is scope for improvement in quality of data in Bihar and Jharkhand
Provision of additional requirement of upstream
Data not available
system (110,132, 220 kV) for the project area Submission of claims of implementing agencies for
Submissions are being made to REC
release of funded
on behalf of PIAs. However, the last 10 % of the fund has not been released as the utility has failed to implement franchisee.
Stakeholders
Roles and responsibilities
Status/ Observation
Energisation of works completed and taking over for
Delay in asset handover and
O&M
energisation was observed in Bihar and Jharkhand
Providing APL connections
Significant number of connections is being provided in West Bengal and Tripura. Very few connections have been issued in Bihar, Orissa and Jharkhand.
Deployment of franchisee
all study states except Bihar franchisee has not been implemented. However some activities like bill delivery has been outsourced mainly to SHGs in those states. Bihar has recently shifted to franchisee models. Though so far there has been low interest from potential entrepreneurs.
Panchayati Raj
Issuing certification of village electrification
Institutions
Issued as per the requirement. However, the PRI requires capacity
(PRIs)
building on definition of village electrification and various provisions of the RGGVY programme PRI have supervisory/ advisory role in RE and
Not effective as PRI are not aware
electricity supply under RGGVY
about their role and responsibilities
Overseeing, in an advisory capacity, the delivery of
Not undertaken
service by the franchisee Subject to commercial viability and sustainability of
PRI not assigned the task directly by
electricity supply business not affected, the state
the state Government.
government may assign larger role of PRI
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