RURAL ELECTRIFICATIO

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The Second Rural Electrification Project will support REC's overall lending program. It will help finance rural electrification schemes meeting agreed criteria. It will introduce improved appraisal techniques and assist REC in carrying out pilot schemes. The project consists of: (i) REC subproject expenditures incurred over the two-year period 1980/81 and 1981/82 on about 1,700 schemes of five selected categories approved by REC between April 1, 1977 and March 31, 1981; and (ii) installation of a single phase pilot scheme in the State of Rajasthan and a power factor control pilot scheme in the State of Karnataka. The five eligible categories of rural electrification schemes are: (i) Ordinary Advanced (OA) -- electrification of groups of villages in economically advanced areas; (ii) Ordinary Backward (OB) -- electrification of groups of villages in less advanced areas; (iii) Special Project Agriculture (SPA) -- connection of irrigation pumps in groups of villages, cofinanced by other institutions; (iv)Special Project Industry (SPI) -- connection of small and medium industry in rural industrial estates; and (v) System Improvement (SI) -- capacity increase and reinforcement of distribution systems.