Access to electricity in rural areas had differential benefits, says study
- A recent analysis of the Rajiv Gandhi Grameen Vidyut Yojana (RGGVY) highlights disproportionate benefits for larger villages compared to smaller ones.
- The study was conducted by researchers from the University of Chicago and the University of Maryland.
Electrification Disparities
- Larger Villages Benefit More
- The villages with fewer than 300 people saw limited gains.
- The villages with over 2,000 people experienced significant economic improvements.
- Per-Capita Expenditure
- In small villages of around 300 people, per-capita monthly expenditure remained mostly unchanged.
- In larger villages (about 2,000 people), per-capita monthly expenditure increased by ₹1,428 (about $17).
Economic Impact of Electrification
- Villages with 300 people experienced "zero return" from electrification after 20 years.
- Villages with 1,000 people saw a 13% return, just exceeding cost-effectiveness benchmarks.
- Villages with 2,000 people saw a 33% return, far surpassing the benchmark, with a 90% chance of generating benefits that exceeded upfront costs.
High Costs, Limited Benefits
- The study highlighted that providing electricity to small, remote villages is expensive and does not significantly reduce poverty.
Rajiv Gandhi Grameen Vidyut Yojana (RGGVY)
- Launched in 2005 to improve electricity access in approximately 400,000 Indian villages.
- In 2015, the RGGVY was renamed the Deen Dayal Upadhyay Gram Jyoti Yojana.
- Under this scheme, families who are below the poverty line will receive electricity free of cost.
- Under this, villages with 300 or more inhabitants were eligible for electrification.
- As of 2018, the Prime Minister declared that all Indian villages were electrified.
- Though the commitment to providing 24/7 power is still ongoing.
Prelims Takeaway
- Rajiv Gandhi Grameen Vidyut Yojana (RGGVY)