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Pradhan Mantri Sahaj Bijli Har Ghar Yojana: Saubhagya Scheme

Mr. C.S. Sudheer | Posted On Tuesday, September 26,2017, 12:27 PM

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Pradhan Mantri Sahaj Bijli Har Ghar Yojana: Saubhagya Scheme



PM Modi is back with his poll promise. The promise.... Electricity for all. The goal is electricity for all citizens of India by December 31st 2018. Prime Minister Narendra Modi launched the  Pradhan Mantri Sahaj Bijli Har Ghar Yojana, or 'Saubhagya,' on September 25th 2017. The cost of the scheme is a whopping INR 16,320 Crores. The mission is to supply electricity to all households in India, free connections to the poor and electricity at low cost to other citizens.

The Government had started a very aggressive village electrification programme called Deen Dayal Upadhyay Gram Jyoti Yojana, launched way back in July 2015. Under this programme more than  78% of 18,000 villages have been electrified. PM Modi says that out of 25 Crore households in India, 4 Crore households still don't have electricity, even after 70 years of Independence.

Under the Saubhagya scheme every house be it in a village or a town or a remote area will get electricity. No poor person should have to pay for electricity. There's another benefit, this scheme could generate demand for electricity. Imagine what this can do for the power sector in India.

Many households in India still use kerosene lamps. PM Modi wants to put an end to this, by giving electricity to every household through the Saubhagya scheme. Want to know more about investment planning? We at will make it easy for you. Just give us a missed call on 022 6181 6111 to explore our unique Free Advisory Service. is not a seller of any financial products. We only provide FREE financial advice / education to ensure that you are not mis-guided while buying any kind of financial products.

Pradhan Mantri Sahaj Bijli Har Ghar Yojana: Saubhagya Scheme

PM Modi wants to transform the lives of the poor in India (Garib Kalyan) and believes he can do so after 3 years of reform in the power sector. The Saubhagya scheme can solve a big problem, Lack of jobs in the economy. More than INR 16,000 Crores will be injected into the economy to create assets. This would create more investments and of course, more jobs.

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Who is funding the Saubhagya Scheme?

The Government has sanctioned INR 16,320 Crores for the Saubhagya scheme. Rural households will get INR 14,025 Crores and Urban households will get INR 2,295 Crores. The Urban non poor are excluded from the scheme. The Union Government will give a 60% grant (money given for a purpose) to fund this scheme. The states will have to provide a 10% grant. The remaining amount say around 30%, will be funded through bank loans.

There is a big bonus for states which complete electrification of all households by December 31st 2018. They would be given an additional 15% grant by the center as an incentive. Its more than 125 years since the famous scientist Thomas Alva Edison invented the bulb. He then said... ‘We will make electricity so cheap that only the rich will burn candles’,” Unfortunately in India, a lot of poor citizens still burn candles and kerosene lamps.

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Everything about the Saubhagya Scheme

PM Modi says, “Forget about conveniences, even the women of the house have to cook in the dark, which is why most of them are under pressure to try and finish the cooking before the sun sets,”

  • Under the Saubhagya scheme there are no subsidies for electricity consumption. You (consumer) will have to pay the bill as per your utilization.
  • Saubhagya scheme will give you a substitute for kerosene. No longer will the poor burn kerosene lamps. This could save a lot of money in kerosene imports.
  • Saubhagya scheme funds the last-mile connectivity costs for willing households in India.
  • The poor citizens of India will not have to pay for an electricity connection. The Government will go to their houses to give it to them.
  • State-run Rural Electrification Corporation will manage the scheme.

How to get electricity connections under Saubhagya scheme?

You can do spot registrations through mobile applications. BPL (Below Poverty Line) households will get free electricity connections. If you are not a BPL household, you can still get the benefits of this scheme by paying INR 500 in 10 installments of INR 50 each along with your monthly electricity bill.

Under the Saubhagya scheme, your monthly electric consumption will not be subsidized. Gram Panchayat and public institutions in rural areas will carry out the billing. If the National electricity grid can't reach your household, you will be given solar power packs along with a battery bank. The Government will identify all the beneficiaries who would get free connections through Socio Economic and Caste Census (SECC) 2011 data.

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What are the benefits of the Saubhagya scheme?

Many electricity distribution companies popularly called discoms, do not like supplying electricity to villages, even if a village has been electrified. Now, if all households in villages get electricity connections along with prepaid and smart meters, there would be a lot of demand for electricity. Discoms would be forced to supply electricity to all villages.

India is committed to developing clean energy and has to meet its  global climate change commitments. The best way to do this is to stop using the highly polluting kerosene lamps and substitute them with electricity. Better lighting will mean good education, transport and connectivity (good street lighting), better healthcare which of course mean more jobs.

The Saubhagya scheme promises free electricity connections to 4 Crore rural households in India. This has the power to transform India and propel growth and jobs in the Nation. Be Wise, Get Rich.

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