Power industry players and experts believe Prime Minister Narendra Modi's target of providing electricity to 18,500 villages, mainly in the remotest areas in 1,000 days is achievable. But, they emphasised the need for complete overhaul of project scheme, adequate capacity of transformers and related equipment, and state's preparedness to ensure uninterrupted power supply.

KEC International MD & CEO Vimal Kejriwal told Business Standard: “There is a serious need to alter the way these projects are awarded, financed and implemented. Today, on account of the lacuna and mismanagement on these fronts, most large players who have contributed significantly to the completion of the last mile, have withdrawn from these projects.” He added, “The payment system has to be streamlined and backlogs and delays have to be addressed. Although most of the projects are individually funded, the funding agencies do not make payments to the contractors on account of the default of the state electricity boards (SEBs)/clients on other payments.''



He said that excessive political and local interference, which often acts as bottleneck in the implementation of these projects, need to be curbed so that the timeline does not go haywire.

Deloitte Touche Tohmatsu India's senior director Debasish Mishra said the bigger challenge would be to create the institutional mechanism for 100 per cent households to have access to 24x7 quality power supply. “Given the affordability challenges for rural poor and stressed financial condition of distribution utilities, such Central government schemes often do not generate the desired outcome,” he said.

Former Union power secretary R V Shahi said that power supply to 18,500 villages in far-away areas through the ministry of new and renewable energy is now possible, especially due to the solar capacity addition and reduction in the solar energy cost because of technological changes. Besides, he noted that the laying of local grid would help power distribution in these villages.

PwC Partner (energy, utilities & mining) Kameswara Rao said, rural electrification is not just about laying lines but building adequate generation capacity for 24x7 supply and a strong operation and maintenance organisation to ensure continuity of operations and revenue collection. “Madhya Pradesh presents a successful example of rural electrification where the government in parallel invested in new generation capacity, network upgrade and improved revenue collection. If done properly, it delivers considerable social and economic benefits, but it not that it is a waste of capital,” he said.

Central Electricity Aut_hority’s former chairman Rakesh Nath observed that the PM’s target is realistic but there is a need for adequate capacity of transformers and other equipment to ensure power does not trip due to overload. “Further, states will have to carry out the separation of residential and agriculture feeders to ensure the continuity of power supply,” he said.