The Cabinet Committee on Economic Affairs( CCEA) on 13 December 2011 approved national electricity fund to provide subsidy of 8466 crore rupees for projects of electricity distribution sector for a period of 14 years. The fund will be operational within a period of six months to one year. The fund is being set up to provide interest subsidy on loans to be disbursed to the distribution companies both in the private and the public sector.
The objective is to improve the distribution network for areas not covered by Rajiv Gandhi Gramin Vidyutikaran Yojna (RGGVY) and Restructured Accelerated Power Development and Reforms Programme (R-APDRP) project areas.
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