Pradhan Mantri Sahaj Bijli Har Ghar Yojana 2017 (SAUBHAGYA)

Policy Update
Anamitra Sinha

Background

Electricity is more than a utility—it is a gateway to better living, economic growth, and empowerment. Recognizing this, the Government of India has steadily worked towards electrifying the nation’s villages over the decades. However, even as milestones like 100% village electrification drew closer, millions of households, especially those in economically and geographically disadvantaged areas, remained unlit. These households faced significant barriers, including the high cost of connections, lack of awareness about electrification schemes, and logistical challenges in accessing services.

To address these gaps, the Pradhan Mantri Sahaj Bijli Har Ghar Yojana (SAUBHAGYA) was launched in October 2017. With a mission to provide electricity to all un-electrified households, the scheme marked a paradigm shift in India’s electrification journey, extending the focus from villages to individual households. Special emphasis was placed on marginalized communities, ensuring that economic and geographical barriers did not deny them access to electricity.

SAUBHAGYA stands as one of the largest universal electrification initiatives globally, made possible by a collaborative effort between the central and state governments. It leveraged the existing framework of the Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY) while addressing its limitations by targeting unconnected households. Under the scheme, beneficiaries were identified through the Socio-Economic Caste Census (SECC) 2011, and simplified procedures ensured easy access to connections, even through self-declaration.

The initiative also introduced innovative solutions such as solar photovoltaic systems for remote households, reinforcing its commitment to inclusivity and sustainability. SAUBHAGYA’s human-centered approach aligned with the national vision of inclusive development, recognizing electricity as a fundamental enabler of education, healthcare, livelihoods, and overall well-being.

By empowering communities and bridging the electrification gap, SAUBHAGYA has illuminated millions of lives, fostering hope, resilience, and a brighter future for India.

Functioning

The Pradhan Mantri Sahaj Bijli Har Ghar Yojana (SAUBHAGYA) was designed to overcome logistical, financial, and awareness-related barriers to household electrification. The scheme adopted a multi-layered implementation strategy, leveraging technology, decentralized governance, and innovative financing mechanisms.

A free metered connection was offered to economically weaker households, while other households could access connections for a nominal charge of ₹500, payable in 10 monthly installments through electricity bills after connection. This ensured affordability and encouraged uptake among disadvantaged populations.

To facilitate accessibility, camps were organized in villages and clusters, enabling on-spot registration for beneficiaries. A mobile application streamlined beneficiary identification, documentation, and electronic registration. These measures significantly reduced procedural complexities, enhancing participation from remote and economically poor households.

The scheme’s technological interventions included solar photovoltaic (SPV) standalone systems for households in remote and inaccessible areas where grid extension was unfeasible. By integrating renewable energy solutions, SAUBHAGYA addressed sustainability and ensured electrification in the most challenging terrains.

Real-time monitoring systems were a cornerstone of the implementation. A web-based dashboard provided near real-time updates on progress, enabling transparency and accountability. State governments were given flexibility in choosing the mode of implementation—departmental, turnkey, or semi-turnkey—allowing context-specific solutions.

The scheme had a financial outlay of ₹16,320 crore, with ₹12,320 crore as Gross Budgetary Support. By June 30, 2021, ₹14,109 crore was sanctioned, and ₹8,840.9 crore disbursed, including a grant of ₹5,408.44 crore, to 26 states and Union Territories.

Between October 2017 and March 2019, SAUBHAGYA electrified 262.84 lakh households, achieving universal household electrification (except for 18,374 households in left-wing extremism-affected areas of Chhattisgarh). The extension of time to electrify an additional 19.09 lakh unwilling households led to nearly complete coverage by the scheme’s conclusion.

This strategic, data-driven approach made SAUBHAGYA one of the most impactful universal electrification initiatives globally.

 Impact:

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The chart above is based on data from the electrification progress under the Pradhan Mantri Sahaj Bijli Har Ghar Yojana (SAUBHAGYA), detailing state-wise household electrification as of March 2019.

The SAUBHAGYA scheme achieved remarkable progress, electrifying 2.62 crore households by March 2019 and leaving fewer than 19,000 un-electrified households nationwide. This nearly universal coverage was accomplished through a strategic, multi-state implementation model.

Socio-Economic Impacts  

  1. Education and Health: Access to electricity extended study hours for children and enabled better healthcare delivery, including the use of electric medical equipment in remote areas.
  2. Economic Productivity: Electrification fostered small-scale industries and entrepreneurial activities by providing reliable energy, leading to increased economic opportunities.
  3. Women’s Empowerment: Women benefited significantly as electricity reduced the time spent on household chores and enabled participation in income-generating activities.

Challenges

  • Affordability Issues: Many low-income households struggled to use electricity due to its cost, despite free or subsidized connections.
  • Quality of Supply: Voltage fluctuations and intermittent supply, especially in rural areas, affected the effective utilization of electricity.

The chart below visualizes state-wise progress in electrification, highlighting the significant strides made in Uttar Pradesh, Bihar, and Rajasthan, which accounted for a large portion of unelectrified households at the scheme’s inception.

With universal household electrification now achieved, the focus must shift to ensuring quality, affordability, and sustainable energy solutions to realize the full benefits of SAUBHAGYA’s historic progress.

Way Forward

While the SAUBHAGYA scheme has successfully achieved its primary objective of universal household electrification, the journey does not end with the provision of electricity connections. To ensure the long-term success of this transformative initiative, several key actions are necessary.

First, strengthening infrastructure is critical. Continued investment in robust power supply networks will enhance reliability and address challenges like voltage fluctuations and power outages. This includes modernizing grid systems and expanding distribution networks, particularly in remote and rural areas.

Energy affordability must also remain a priority. Introducing subsidized electricity tariffs for low-income households will make electricity more accessible, helping to bridge the gap between urban and rural areas and ensuring that families can fully benefit from reliable power.

Community engagement is essential. Educating rural populations on energy conservation, the optimal use of electricity, and the benefits of renewable energy can foster a culture of sustainability. Renewable integration, particularly decentralized solar power solutions, will help ensure a continuous and eco-friendly energy supply in off-grid areas.

Finally, to manage future energy needs, capacity building within Distribution Companies (DISCOMs) is necessary. These companies must be empowered with the knowledge, resources, and tools to cater to growing energy demands effectively.

Through these sustained efforts, SAUBHAGYA can further solidify its role as a catalyst for socio-economic development across India.

Conclusion

SAUBHAGYA represents a landmark step in India’s journey toward universal electrification. While it has made significant strides in ensuring connectivity, the long-term success of the initiative will depend on sustained investments in infrastructure, innovative policy mechanisms, and active stakeholder engagement. Bridging the gaps in affordability and quality will be pivotal in realizing the scheme’s transformative potential.

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About the Contributor: Anamitra Sinha, Policy Research Intern at IMPRI Institute and Master’s student in Development, Policy Planning, and Practice at Tata Institute of Social Science, School of Rural Development, Tuljapur (Off-Campus).

Acknowledgment: This article was reviewed by IMPRI experts and other collaborators.

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