Welcome To National Electricity Fund


Government of India has approved the NEF (Interest Subsidy) Scheme to promote the capital investment in the distribution sector by providing interest subsidy, linked with reform measures, on the loans taken by public and private power utilities for various capital works under Distribution projects. This scheme shall be applicable in the entire country and all the works except the works covered under RGGVY & R-APDRP projects should not be eligible to ensure non-duplication and non-overlapping of grant/subsidy towards investment. NEF Scheme have provision to provide interest subsidy and other charges aggregating to Rs 8466 Crs for a period of 14 years on loans availed by the distribution utilities in both public and private sector. As per the Working Group on Power of 12th plan the requirement of funds for the power sector was estimated as Rs 10,31,600 crore for the XI Plan which includes Rs 5,66,396 crore for the Generation sector, Rs 15,875 Crores for Renovation & Modernization of existing Generation plants & Rs 4,47,000 crore for the Transmission and Distribution (T&D) sector including DDG. The fund requirement envisaged for distribution sector including DDG was Rs. 3,07,000 crores however likely expenditure in the 11th plan is Rs. 1,00,000 crore i.e. only about 32.57%. The distribution sector is the most important and the weakest link in the power sector value chain, which channelizes all the revenues and responsible for overall stability of the sector. The Creation of National Electricity Fund becomes more relevant since this will encourage utilities to match the investments with the planned Generation capacity targts for XII Plan.
News & Notice

Steering Committee in the 6th meeting held on 31.03.2015 has approved interest subsidy of Rs. 751.32 lakh under NEF
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Second workshop at Guwahati on operational guideline of National Electricity Fund Interest Subsidy Scheme was held on 25 July 2013, for all the Discom/Power department of North Eastern State (including Sikkim).
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Sensitization workshop was conducted in Chennai, Kolkata, Patna and Trivandrumfor their respective discomson Operational Guidelines
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Steering Committee has sanctioned proposals worth Rs. 10953.80 cr of capital loan from 8 states (11 discoms) during its meeting held on
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REC conducted Workshop in J&K for Power Department of the state on Operational Guidelines of National Electricity Fund-Interest Subsidy scheme on 22nd September, 2012.
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Sensitization workshop was conducted in Bhubaneswar on 24th September 2012 for Odisha Discoms on Operational Guidelines of National Electricity Fund- Interest Subsidy scheme.
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Workshop in Guwahati on Operational Guidelines of National Electricity Fund-Interest Subsidy scheme was held on 26th September,2012 for all North Eastern states including Sikkim.
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REC conducted a Presentation in Haryana for both the Discoms of the state on Operational Guidelines of National Electricity Fund-Interest Subsidy scheme on 1st October, 2012.
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Sensitization workshop was conducted in Shimla on 3rd October, 2012 for Himachal Pradesh Discom on Operational Guidelines of National Electricity Fund- Interest Subsidy scheme.
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Workshop at Bhopal on Operational Guidelines of National Electricity Fund-Interest Subsidy scheme was held on 5th October, 2012 for all the discoms of Madhya Pradesh.
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REC conducted Workshop in Gujarat for all the Discoms of the state on Operational Guidelines of National Electricity Fund-Interest Subsidy scheme on 12th October, 2012.
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