Maarg Manthan · Topic 12.6

Saubhagya Scheme (Rural Electrification)

Current Affairs & Government Schemes › Energy and Renewable Energy Schemes · Topic 12.6

Saubhagya, officially the Pradhan Mantri Sahaj Bijli Har Ghar Yojana, is a Ministry of Power scheme launched on 25 September 2017 to give electricity connections to all remaining un-electrified households in rural areas and poor households in urban areas. It had an outlay of Rs 16,320 crore, with gross budgetary support of Rs 12,320 crore, and REC Limited was the nodal agency. Poor households identified in the Socio Economic and Caste Census of 2011 got free connections, and others paid Rs 500 in ten instalments on their bills. The scheme set a deadline of 31 March 2019 and reported about 2.8 crore households connected.

6 min read · UPSC Prelims · Current Affairs & Government Schemes · Energy and Renewable Energy Schemes

At a Glance

Launched 25 September 2017
Ministry Power
Outlay Rs 16,320 crore
Nodal agency REC Limited
Deadline 31 March 2019, later extended
Exam link UPSC Prelims, Current Affairs and Government Schemes: Energy and Renewable Energy Schemes

Where Does It Fit?

This topic completes the household electricity link in the macro on energy. The earlier topics deal with clean supply and efficiency, while Saubhagya deals with access, which means a connection to the grid. Previous topic: UJALA Scheme (LED Bulb Distribution). Next topic: Ujjwala Yojana (LPG Connections).

What Does the Saubhagya Scheme Provide?

Feature	Details
Full name	Pradhan Mantri Sahaj Bijli Har Ghar Yojana, which means easy electricity for every home
Launch	25 September 2017, the birth anniversary of Deendayal Upadhyaya
Outlay	Rs 16,320 crore, with Rs 12,320 crore as gross budgetary support from the Centre
Beneficiaries	All remaining un-electrified households in rural areas and poor households in urban areas
Cost to the household	Free connection for poor households identified through the Socio Economic and Caste Census of 2011. Others paid Rs 500, recovered in ten instalments with the electricity bill
Nodal agency	REC Limited, with State distribution companies doing the work

How Was the Scheme Implemented?

Camps: distribution companies held camps in villages to register households and take applications, with the connection given on the spot where possible
Mobile app and portal: a mobile app was used to collect details with photographs and to track the connections
Grid extension: households near the grid got a connection with a meter, a service cable and a wiring point
Remote households: for remote areas where the grid cannot reach, solar power packs with a 200 to 300 watt panel, a battery, five LED lights, a DC fan and a plug point were given, with five years of repair
Link to village electrification: Saubhagya followed village electrification under Deendayal Upadhyaya Gram Jyoti Yojana, which finished with the last un-electrified village, Leisang in Manipur, in April 2018
Funding: the Centre gave grants for the work, and a share was loaned or met by distribution companies
Target date: the first target was December 2018, later moved to 31 March 2019
Recording of results: a dashboard on the portal showed daily connections by State

What Else Should You Remember?

Reason for the scheme: many villages were counted as electrified even though most households had no connection
Definition of village electrification: a village was counted as electrified if 10 percent of households and public places had power. This did not mean every home was connected
Reported outcome: the Ministry of Power reported about 2.8 crore households connected under the scheme, and declared that all willing households were electrified by 2019 to 2021, depending on State reporting
Beyond connection: a connection does not mean reliable supply. Hours of supply, voltage and billing vary across States, so access and quality are different things
Willing households: the target covered households that wanted a connection, so some households stayed out by choice or due to affordability
Closure: the scheme period ended in 2021 to 2022, and the work of strengthening the network moved to the Revamped Distribution Sector Scheme, launched in 2021 with an outlay of about Rs 3 lakh crore of gross budgetary support and investment, as reported
Earlier schemes: the Rajiv Gandhi Grameen Vidyutikaran Yojana of 2005 was the earlier rural electrification programme and was merged into the Deendayal Upadhyaya Gram Jyoti Yojana of 2014
Constitutional context: electricity is on the Concurrent List, so States run distribution and the Centre gives funds and policy
Impact on women and children: lighting helps study at night and cuts the use of kerosene lamps, which cause indoor smoke
Connection with LED scheme: new connections increase demand, and efficient bulbs reduce the load, as in UJALA Scheme (LED Bulb Distribution)
Connection with clean cooking: together with the clean fuel scheme, it forms a push for household energy access, as in Ujjwala Yojana (LPG Connections)
Distribution company finances: new poor households use small amounts of power and pay little, so the financial health of distribution companies remains a concern

Why Does It Matter for the Exam?

Names and dates: full name, launch date and the person honoured by the launch date
Numbers: Rs 16,320 crore outlay and the Rs 500 payment in ten instalments
Agencies: REC Limited as the nodal agency and the Ministry of Power
Related schemes: Deendayal Upadhyaya Gram Jyoti Yojana and Revamped Distribution Sector Scheme
Common errors: assuming a village counted as electrified has every household connected

As an analytical point, Saubhagya closed the gap in access, but electricity only helps if supply is reliable and affordable. The next task is quality of supply, smart metering and the finances of distribution companies, which the follow-up reform scheme tries to address.

Why Is This Topic Important?

Basics Name, date, outlay
Process Camps and solar packs
Beyond access Quality and finances

What Came Next?

The next topic covers the scheme that gave clean cooking fuel to poor households. Next topic: Ujjwala Yojana (LPG Connections).

Key People and Terms

Saubhagya Pradhan Mantri Sahaj Bijli Har Ghar Yojana
SECC Socio Economic and Caste Census 2011
REC Rural Electrification Corporation, now REC Limited
DDUGJY Deendayal Upadhyaya Gram Jyoti Yojana
RDSS Revamped Distribution Sector Scheme
Last mile Final link to the household

Exam Corner

Points to Remember

Launched 25 September 2017; Ministry of Power.
Outlay: Rs 16,320 crore.
Nodal: REC Limited.
Others paid Rs 500 in 10 instalments.
Reported about 2.8 crore households connected.

Do Not Confuse With

Saubhagya and DDUGJY Household connections versus village and feeder infrastructure
Village electrified and household electrified 10 percent of homes versus every home
Saubhagya and RDSS Access scheme versus a distribution reform scheme

Memory Hook

Sahaj Bijli Har Ghar: free for the SECC poor, five hundred in ten parts for the rest.

Mains Angle

Questions ask about access versus quality of electricity. These points give a balanced frame.

Benefits Access, study hours, safety
Concerns Supply quality, finances, definition
Way forward Smart meters, feeder upgrades, reform

A Question You May Face

An original practice question, not a past paper question.

“Evaluate the success of the Saubhagya scheme in achieving universal household electrification, and discuss the remaining challenges.”

How to Answer

Aim Connect every home.
Method Free and low cost connections.
Gaps Supply quality and finances.
Way Distribution reform.

GS Relevance

Prelims: full form, launch, outlay, nodal agency, beneficiary selection. GS Paper 2 and 3: rural development, power sector, inclusive growth, welfare delivery.

Frequently Asked Questions

What is the Saubhagya scheme?

Saubhagya, or Pradhan Mantri Sahaj Bijli Har Ghar Yojana, is a Ministry of Power scheme launched on 25 September 2017 to give electricity connections to all remaining un-electrified households. It had an outlay of Rs 16,320 crore and REC Limited acted as the nodal agency for the Centre.

Who was eligible for free connections under Saubhagya?

Poor households identified through the Socio Economic and Caste Census of 2011 got free electricity connections. Other willing households that were not on the list could get a connection by paying Rs 500, which was recovered in ten instalments through their electricity bills.

Which ministry runs Saubhagya?

The Ministry of Power runs Saubhagya, with REC Limited as the nodal agency. State distribution companies carried out the work in the field, held camps to register households, and used a mobile app to record connections, while the Centre gave grants for the scheme.

How were remote households connected under Saubhagya?

Households in remote areas that the grid could not reach received solar power packs with a 200 to 300 watt panel, a battery, five LED lights, a DC fan and a power plug, with five years of repair and maintenance. This approach was meant for hilly and forest areas.

What is the latest status of Saubhagya?

The scheme period has ended, and the Ministry of Power reported about 2.8 crore households connected, declaring electrification of all willing households. The focus has shifted to quality of supply and distribution reform under the Revamped Distribution Sector Scheme launched in 2021, so Saubhagya should be treated as a completed scheme.

PYQ Practice — Statement Analysis

1 Saubhagya was launched on 25 September 2017.

True

It was launched on the birth anniversary of Deendayal Upadhyaya.

2 REC Limited was the nodal agency for Saubhagya.