Budget 2014: FM proposes separate infrastructure for agriculture consumers for 24x7 power supply

NEW DELHI: Aiming to replicate Gujarat's model of 24x7 power supply by segregating infrastructure for agriculture and non-agriculture consumers, the government today announced Rs 500 crore support for the proposed scheme.

"Deen Dayal Upadhyaya Gram Jyoti Yojana for feeder separation will be launched to augment power supply to the rural areas and for strengthening sub-transmission and distribution systems and a sum of Rs 500 crore for this purpose will be given by the government," Finance Minister Arun Jaitley said in his Budget speech.

He added, "Power is a vital input for economic growth and we are committed to providing 24x7 uninterrupted power supply to all homes."

This 24x7 electricity supply model by separating the agricultural and non-agricultural feeders (a power line for transmitting electrical power from a generating station to a distribution network) is currently being executed by Gujarat.

The state's Jyotigram Yojana is a scheme to make available 24 hours three-phase quality power supply to rural areas where the feeders have specially designed transformers to supply power to farmers residing in scattered farm houses.

Jaitley said that the National Capital Territory of Delhi is plagued by frequent transmission related problems and issues of water distribution and supply.

"In order to overcome this and make Delhi a world class city, I propose to provide Rs 200 crore for power reforms and Rs 500 crore for water reforms,"

In addition, to solve the long term water supply issues to the capital region, construction of long pending Renuka Dam would be taken up on priority with an initial support of Rs 50 crore by the central government, he said.

Supply of power continues to be a major area of concern for the country, Jaitley said.

"Instead of annual extensions, I propose to extend the 10 year tax holiday to the undertakings which begin generation, distribution and transmission of power by March 31, 2017."

This stability in our policy will help the investors to plan their investments better, he added.