Key Points
The CAG found that the target for unelectrified households was reduced from 300 lakh to 248.48 lakh, enabling the government to declare 100% electrification by March 2019.
Several states continued to report unelectrified households even after the official deadline, while household level data for nearly 3 lakh connections was missing or unverifiable.
The audit flagged duplicate claims, double payments, unfinished feeder separation works and delays in project execution, raising questions about implementation and oversight.
A performance audit by the Comptroller and Auditor General of India (CAG), published on 24 December 2025, has raised serious questions over the Centre’s claim of having achieved 100% rural household electrification. The audit examined the implementation of the Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY) and the Pradhan Mantri Sahaj Bijli Har Ghar Yojana (SAUBHAGYA), pointing to altered targets, data gaps, duplicate claims and unfinished infrastructure works under the two flagship power schemes.
DDUGJY, launched in 2014, and SAUBHAGYA, launched in 2017, aim to strengthen rural power distribution and provide last mile electricity connections to all unelectrified households. The report, tabled in Parliament during the 2025 Winter Session, concludes that the declaration of universal electrification by March 2019 was based on revised benchmarks and incomplete verification.
According to the audit, the original target under SAUBHAGYA was to electrify 300 lakh unelectrified households. However, the number of households reflected on the scheme dashboard was later reduced to 248.48 lakh. Once this revised figure was adopted, the government declared 100% achievement after electrifying 262.84 lakh households by March 2019. The CAG noted that this recalibration of targets allowed the claim of full coverage despite states continuing to report unelectrified households.
The audit found that seven states reported a total of 19.10 lakh unelectrified households as of March 31, 2019. These disclosures, the report said, made it impossible for auditors to ascertain the genuineness of the electrification claims. It also observed that of the 262.84 lakh households said to have been electrified by March 2019, only 151.60 lakh were actually covered under SAUBHAGYA. The remaining households were electrified under other central and state schemes, including DDUGJY and state rural electrification programmes, but were shown as achievements under SAUBHAGYA through what the Ministry of Power described as a co-ordinated effort with states.
The CAG pointed out further discrepancies in household level data. While the overall figure of electrified households stood at 262.84 lakh, household-wise details were available for only 259.88 lakh households, leaving a gap of 2.96 lakh connections without verifiable records. The Ministry of Power attributed this gap to incorrect or missing village census codes submitted by states during the final phase of implementation.
States continued to flag gaps even after the 2019 declaration. The Monitoring Committee sanctioned 241.95 lakh unelectrified households for grid-based electrification under SAUBHAGYA, of which only 149.58 lakh were electrified by March 2019. Seven states, including Assam, Chhattisgarh, Jharkhand, Karnataka, Manipur, Rajasthan and Uttar Pradesh, sought and received an extension up to 31 March 2020. During the extended period, 12.57 lakh households were electrified, followed by another 6.14 lakh between April 2020 and March 2021. Despite this, 11.76 lakh households in eight states were again identified as unelectrified and sanctioned for coverage under DDUGJY. By December 2023, electricity connections had been provided to only 4.31 lakh of these households.
The audit records that the Ministry of Power maintained that SAUBHAGYA was a time-bound scheme and did not cover new households emerging after March 2019. Electrification, the ministry told auditors, was a dynamic process, and the scheme had achieved its objective by covering all willing households identified within its reference period.
Beyond data inconsistencies, the CAG flagged duplicate claims and financial lapses. In two states, 16,728 households received electricity connections under both DDUGJY and SAUBHAGYA. Despite already receiving grants under DDUGJY, distribution companies (DISCOMs) claimed an additional ₹7.53 crore from the Rural Electrification Corporation (REC) under SAUBHAGYA, resulting in double payments. DISCOMs also diverted ₹734.01 crore earmarked for implementation for several unauthorized purposes, the report noted.
The report also examined the performance of DDUGJY, particularly its goal of feeder separation to ensure reliable supply for agricultural and non-agricultural consumers. Against 16,500 agricultural feeders approved by the Cabinet Committee on Economic Affairs, only 9,019 were sanctioned by the Monitoring Committee, and just 7,833 were actually separated by March 2022. The CAG said this reflected inadequate assessment of state-wise requirements and incomplete coverage of a core objective of the scheme.
Implementation delays were another major concern. The audit found delays in awarding work in 494 of 605 projects across 24 states and two Union Territories, accounting for over 81% of projects. Delays were also recorded in 555 completed projects, with nearly half experiencing delays exceeding 24 months. Deficiencies were noted in the preparation of detailed project reports, many of which were submitted without proper field surveys or recommendations from State Level Standing Committees.
Financial management issues extended to early release of funds. The audit observed that REC released first instalment grants of ₹541.56 crore to six states before execution of mandatory agreements and released ₹1,603.81 crore to six states without ensuring timely infusion of state contributions. In addition, REC raised ₹500 crore through extra-budgetary borrowing in March 2020, despite having significant unutilised balances, leading to an avoidable interest burden of ₹15.97 crore on the Ministry of Power.
Taken together, the findings present a picture of ambitious targets achieved on paper through revised benchmarks, while gaps in coverage, verification, infrastructure execution and financial discipline persisted on the ground. The audit underscores the need for more rigorous monitoring, transparent data practices and accurate assessment if claims of universal electrification are to reflect reality rather than accounting adjustments.
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