Rural Electrification in India

-Rural electrification involves supply of energy for two types of programmes:
(a) production-oriented activities like minor irrigation, rural industries etc. and
(b) electrification of villages. Rural Electrification Corporation (REC) was established in July 1969 to finance various projects of rural electrification.
- REC is a Public Financial Institution under section 4A of the Companies Act 1956.
- REC is also registered as a Non-Banking Financial Company (NBFC) under section 451A of RBI Act, 1934.
- At present REC is a 'Navratna' Company.
- The current mission of REC is to facilitate availability of electricity for accelerated growth and for enrichment of quality of life of rural and semi-urban population and to act as a competitive, client-friendly and development oriented organisation for financing and promoting projects covering power generation, power conservation, power transmission and power distribution network in the country.
- To give impetus to rural electrification, the Government has given special attention for creation and augmentation of Rural Electricity Distribution Backbone and Village Electricity Infrastructure so as to cover all unelectrified villages and rural households within a span of five years.
- Rural Electricity Supply Technological Mission (REST) has been set up to oversee the implementation of schemes under Accelerated Rural Electrification Programme.
Rural Electrification Policy
- On August 23, 2006, Government notified Rural Electrification Policy under section 4 & 5 of the Electricity Act, 2003.
- The policy aims at provision of access to electricity to all households by year 2009, quality and reliable power supply at reasonable rates, and minimum lifeline consumption of 1 unit per household per day as a merit good by year 2012.