Skip to content

Invest & Trade Smarter with Fisdom App

Get a FREE Fisdom account for Stocks, Mutual Funds & more, all in one place

Download Fisdom app

Deen Dayal Upadhyaya Gram Jyoti Yojana

Written by - Akarshita Yaji

September 14, 2022 4 minutes

The government aims to provide electricity in every corner of the country, be it a small village or a town. With this thought, the government has come up with a new scheme known as Deen Dayal Upadhyaya Gram Jyoti Yojana that came into existence in 2014. Through this scheme, farmers will get electricity in their fields, and there will be a continuous power supply in the rural regions. Under this scheme, around 18,452 villages will get electricity within 1000 days.

The objective behind the launching of Deen Dayal Upadhyaya Gram Jyoti Yojana

Rural regions have an insufficient supply of power or unexpected cut-off. The primary purpose of the scheme is to provide electricity to the villages. Also, it aims to improve the quality of life of the people there. Farming without electricity is tough. It affects agriculture-based customers, so this scheme is working towards providing every farmer electricity for their field. The government will install electricity meters, transformers, and feeders in farms.

With the scheme, the government wants to modernize power production and its distribution. 

Major components of the scheme

  • Feeder separation
  • Developing the sub-transmission and distribution infrastructure
  • Metering at all levels of transmission
  • Microgrid and off-grid distribution network
  • Rural electrification

Funding for Deendayal Upadhyaya Gram Jyoti Yojana

The amount of around 43,033 crores is set aside for the scheme. 

85% of grant share is for particular category states, including Sikkim,  Himachal Pradesh, Uttarakhand, and Jammu and Kashmir. The remaining 60% is for other states. 

Critical aspects of Deendayal Upadhyaya Gram Jyoti Yojana

  • The scheme will create provision for electricity in every village.
  • There will be electricity in the farmers’ fields, including electricity meters, transformers, and feeders.
  • It will help improve the standard of living of the people in rural regions. 
  • Our PM Shri Narendra Modi initiated the scheme in the year 2014.
  • Earlier, the scheme was in existence with Rajiv Gandhi Gramin Vidyutikaran Yojana.
  • Eighteen thousand four hundred fifty-two villages will get electricity in 1000 days.
  • For the scheme, the government has kept a budget of Rs43,033 crore.
  • The scheme focuses on implementing new lines across thousands of kilometers. It also sets up various new substations.
  • Rural Electrification Corporation Limited is the nodal agency for the scheme.
  • All discoms will get financial assistance through the scheme.
  • The scheme will help in developing small-scale industries. 
  • The banking, education, and health sectors will improve through the scheme. 
  • Every region will get internet facility, and thus more employment will be there. 
  • There will be growth in agricultural yield.
  • Schools, hospitals, and panchayats will also develop as electricity will be there through the scheme in these departments. 

Advantages of Deendayal Upadhyaya Gram Jyoti Yojana

  • Farmers will earn more due to an increase in agricultural production. 
  • Employment is more as new businesses will now get the chance to grow.
  • Growth of the Banking (ATM) services, Education and Health
  • More access to internet, radio, television and other electrical appliances.
  • More social security
  • There will be more comprehensive development.

The path ahead

  • The government is working towards making a reliable, effective, and fast rural electrification with the help of a unified model. For making the plan possible, the government is implementing an integrated policy framework.
  • Next in the plan is to develop a regulatory framework for mini-grid-based rural electrification with long-term sustainability. 
  • Mini-grids function with the help of small local consumers. They are mainly dependent on agricultural income. Therefore, they may face issues like loss of income due to uncertainties such as disturbances in agricultural activities. To save the group from revenue failure, the government prioritizes specific plans. 
  • For an audit of the scheme, there should be a transparent monitoring mechanism. It will make the task more meaningful and fair.
  • The goal is to have  100% rural electrification. There should be more Solar street lights in villages and community places. 
  • To adopt solar lanterns or home lighting systems.
  • Different mini-grids having solar, wind, biomass, or hydropower as a base can help in sustainable business models to electrify the rural regions. 
  • It is crucial to develop the technology concerning hybrid systems. It involves the proper functioning of the mini-grids. Also, it will lead to effective energy storage systems. Finally, it will result in a balance between demand and supply.
  • The scheme must also follow the process of awareness among the rural regions and quality consciousness and capacity building. 
  • It is a daunting task to develop rural electrification. But with, an integrated approach can resolve issues of electrification. The mission is to combine renewables with a conventional grid extension. Also, the policies should be proactive, which will make the scheme more successful.

The need for rural energy is for various purposes like cooking, irrigation, water heating, communication, etc. Through the Deendayal Upadhyaya Gram Jyoti Yojana, the government wants to make these activities smooth in rural regions. 

Download one of India's best wealth management apps

Join more than one million investors and take control of your wealth

Download app