Three years into his term, PM Modi resurrects economic advisory panel to kick start growth; launches Saubhagya

The Government of India led by Prime Minister Narendra Modi on Monday constituted an Economic Advisory Committee (EAC). 

A statement said that current member of NITI Aayog Bibek Debroy would be the chairman of the EAC. Its other members are Ratan Watal, former finance secretary, Surjit Bhalla, CMD, Oxus Investments, Rathin Roy, Director, NIPFP and Ashima Goyal, Professor, IGIDR. 

Interestingly, just last week the government extended the term of chief economic advisor to Goverment of India Arvind Subramanian by one year. 

It is currently unclear the synergies between the EAC and CEA. 

PM Modi also launched Saubhagya- Sahaj Bijli Har Ghar Yojna on the occassion of birth anniversary of Pandit Deendayal Upadhyaya. The scheme was launched to provide electricity to all household by March 31, 2019.

The scheme, which will provide access to electricity to all willing households, will act as a substitute of kerosene as fuel. 

Moreover, the scheme also aims to improve educational and health services, communications and public safety. Also, it eyes to increase job opportunities, better quality of life, especially for women in daily chores. 

According to the official statement, the government will spent Rs 16,320 crore on this scheme and the  government’s budgetary assistance is Rs 12,320 crore. For rural household, the outlay will be Rs 14,025 crore and Rs 2295 crore for urban households.

Further, 60% of the scheme will be funded via government grants, with states contributing 10% and the rest amount will be covered by loans. Under special category states, the government will grant 85% of the outlay and the states will contribute 5%.

The households which will be benefitted of this scheme will be identified using 2011 census. While Below Poverty Line (BPL) families will be given free electricity connections, Above Poverty Line (APL) families can get the connections for Rs 500. This amount can be payable in 10 monthly installments by including in electricity bills.