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Key Questions Answered
- What is the evolving market size for LED bulbs due t- rural electrification in India?
- What is the evolving market size for electric consumer durables such as refrigerator and washing machines due t- rural electrification in India?
- Which are the best performing and least performing states with regards t- rural electrification and reliability of power supply?
- What are the likely challenges and pitfalls that may undermine the objective of rural electrification?
Target audience /Reasons t- buy
Electrical appliances companies- Rural India is a proven business case for FMCG and consumer packaged goods (CPG) sector. The rural electrification, both off-grid and on-grid, is bound t- have a ripple effect on the adoption and demand of electrical appliances in the times t- come.
Power Generators, traders and Suppliers- Both infrastructure and availability are mutually tied t- enable sustainable demand growth and future base demand potential. The report captures opportunities and challenges emerging from growing rural demand base which will is of strategic importance t- both generators and suppliers.
Government Agencies/Policy Makers -The report will be vital for the Government and its policy making agencies wh- have the mandate of achieving the end objective of enabling sustainability in rural segment through electrification of households and businesses.
Banks/Financing Institutions/ Investors- The report provides an independent analysis of the opportunities and pitfalls t- take an informed investment decision and frame a robust outlook towards rural India electrification impact.
Rural electrification is not a new agenda and has remained one irrespective of the political party ruling at the center. However, with the evolution of rural sector's social and economic profile, along with build-up of power availability, generation capacity and transmission & distribution, the profile of rural electricity has seen significant positive changes over the last few years.
The rural electrification agenda goes back t- 2005 when under the leadership of UPA government schemes such as Rajiv Gandhi Grameen Vidyutikaran Yojana were launched. Following this, the incumbent government, starting July 2015, launched Deendayal Upadhyaya Gram Jyoti Yojana (DDUGJY) which talked about complete rural electrification by 2018 and providing 24x7 power supply t- all households in collaboration with the various state departments by 2021-2022. DDUGJY als- provides state governments with subsidies t- provide free connections t- below poverty line households.
Further, on 15th August 2015 Prime Minister declared an ambitious target t- electrify XX rural areas through "Saubhagya - Pradhan Mantri Sahaj Bijli Har Ghar Yojana". This has been touted as a much needed policy t- g- a step further towards facilitating the last mile connectivity. Saubhagya budgets for INR XX for rural areas covering for capex on critical equipments enroute power supply from high voltage lines t- last mile consumer consumption. For very remote villages, the Saubhagya scheme provides solar power packs, battery back, with LED lights, and a direct current driven fan.
S- far, nearly XX% of the villages in rural areas have been electrified and only over XX% rural villages still need t- be electrified as the balance XX% rural areas are uninhabited. While the statistics presents an optimistic outlook, by definition, a village is being termed as "electrified" if it achieves a bare minimum of only XX% of households and public institutions being connected t- the grid. However, keeping aside the definition and short-term implications, the rural electrification drive is seen as a positive step which will possibly make way for improvements in the overall demand for power in the country in the near t- medium term. There are positive sentiments in the private sector with players such as Bajaj Electricals, Samsung India, Whirlpool India, Schneider Electric, etc. pinning strong hopes of a demand wave for electrical appliances and consumer durable products such as refrigerators, washing machines, etc. in the times t- come.
The sheer potential of India's rural segment cannot be undermined, as future improvements in reliability or quality of power will ensure a rapid adoption of electrical appliances as is being seen for states such as Maharashtra, Uttar Pradesh and Tamil Nadu.
We believe that rural electrification is bound t- have a positive impact on the demand for power, leading t- enhanced utilization of generation assets. The reliability of power supply is the catalyst for future growth of rural segment's appetite for electrical appliances in the times t- come. Based on these events, We are pleased t- launch its strategic market research report titled, "Rural Electrification and its Impact on Demand for Electric Appliances in Rural India" which is conceived t- provide a high-level quantification of opportunities in pipeline for electrical appliances from rural India.