Saubhagya Scheme- Pradhan Mantri Sahaj Bijli Har Ghar Yojana


Indian Prime Minister mr. Narendra Modi has launched a scheme to supply electricity to all the households. The cost of this project is estimated at Rs. 16,320 crore. The project is expected to be completed by December 2018 which will provide electricity at very low cost to normal people and free of cost to poor households.

This project named as Pradhan Mantri Sahaj Bijli Har Ghar Yojna, ‘Saubhagya’ will be commenced just before the general elections. It aims to improve the living conditions of the poor households and reducing the need of kerosene lamps. Mr. Modi stated that this scheme will bring monumental change in the lives of poor people. This has become possible after three years of reforms in the power sector.

The PM also said, “In the working of this government, all you can see is Garib Kalyan (welfare of the poor). The aspirations of the poor determine the working of our government.” Minister of power and renewable energy, Mr. RK Singh said, “After connecting each house with electricity, the government’s next target would be to end load shedding and provide 24×7 power.”

The scheme is expected to inject Rs. 16,000 crore in the economy and create assets. This will also generate employment. The important point is that the electricity will be billed without an subsidy. The central government will provide 60% endowment and state governments will provide 10% towards the scheme.

Mr. Modi stated, “It’s been over 125 years when the famous scientist Thomas Alva Edison invented the bulb and who had said: ‘We will make electricity so cheap that only the rich will burn candles.” This scheme will fulfill the government’s plans to make electricity available in each and every village of the country. The beneficiaries for this scheme will be identified using Socio Economic Caste Census data.

Key Points:

  • The Prime Minister Shri Narendra Modi has launched a new scheme on September 25, 2017-Pradhan Mantri Sahaj Bijli Har Ghar Yojana –“Saubhagya” to ensure electrification of all willing households in the country in rural as well as urban areas.
  • The total cost of the project is Rs. 16, 320 crore while the Gross Budgetary Support (GBS) is Rs. 12,320 crore.
  • The Government of India will mostly provide the funds for the Scheme to all States/UTs.
  • The States and Union Territories are expected to complete the works of household electrification by the 31st of December 2018.


  • The beneficiaries for free electricity connections shall be identified using Socio Economic and Caste Census (SECC) 2011 data.
  • Un-electrified households that are not covered under the SECC data would also be provided electricity connections under the scheme on payment of Rs. 500 which shall be recovered by DISCOMs( Electricity Distribution Companies) in 10 instalments through electricity bill.

Comprises of :

For un-electrified households, which are located in remote and inaccessible areas, the pack comprises of

  • The solar power packs of 200 to 300 WP with battery bank
  • Five LED lights,
  • One DC fan,
  • One DC power plug.
  • It also includes the Repair and Maintenance (R&M) for 5 years.

Expected outcome :

  • Environmental upgradation by substitution of Kerosene for lighting purposes
  • Improvement education services
  • Better health services
  • Enhanced connectivity through radio, television, mobiles, etc.
  • Increased economic activities and jobs
  • Improved quality of life especially for women

For easy & accelerated implementation of the Scheme , modern technology shall be used for household survey by using Mobile App.
Beneficiaries would be identified and their application for electricity connection along with the photograph of the applicant and identity proof shall be registered.

The Gram Panchayat/Public institutions in the rural areas are to be authorised to collect application forms along with complete documentation, distribute bills and collect revenue in consultation with the Panchayat Raj Institutions and Urban Local Bodies.

Nodal Agency:

The Rural Electrification Corporation Limited (REC), the PSU,Public Sector Enterprise of India with Navratna status, will remain the nodal agency for the implementation.

The funding structure of Saubhagya is as under:

Agency Nature of support Quantum of support (%)
Other than Special Category States Special Category States
Govt of India Grant 60 85
Utility/State Contribution Own Fund 10 5
Loan (FIs/ Banks) Loan 30 10
Additional Grant from GOI on achievement of prescribed milestones Grant 50% of total loan component(30%) i.e 15% 50% of total loan component(10%) i.e 5%
Maximum Grant by GOI (including additional grant on achievement of prescribed milestones) Grant 75% 90%

Citizens can track progress of the scheme by visiting (Saubhagya portal) and get relevant information from the social media accounts: grameenvidyut (Twitter), grameenvidyutikaran (Facebook) and grameen_vidyutikaran (Instagram)

Press Information Bureau Government of India Ministry of Power

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