Executive Summary of RGGVY Evaluation

Executive Summary Project code 2011ER01 Executive Summary of RGGVY Evaluation Prepared for Rural Electrification Corporation Ltd 1 Contents Intro...
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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

3

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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