The Indian government has launched the "Saubhagya" electrification scheme, which is meant to complete the country's electrification (rural and urban) by 31 March 2019. An amount of Rs 16,320 crore (about US$2.5bn) will be allocated in order to bring electricity to about 40m households. The central government will be the biggest contributor (around 60% of the fundings) and is expected to provide a gross budgetary support of Rs 12,320 crore. The Indian states will provide 10% of the amount and 30% will be financed by loans through banks.
The government will provide an additional grant of 50% of the loan component under the scheme if the 100% household electrification objective is achieved by 31 December 2018 instead of March 2019. The total Rs 16,320 crore outlay will be mostly dedicated to rural areas (Rs 14,025 crore) while Rs 2,295 crore will be spent in urban areas. The Rural Electrification Corporation (REC) will act as the nodal agency to implement the scheme throughout the country.