The Ministry of Power plans to offer new electricity connections free of cost to all households. The Rural Electrification Corporation (REC) is formulating a scheme for providing long-term loans to states that agree to offer free new connections. The scheme will cover the expenses for laying electricity lines and installing meters, among other things. Discoms have to get the new connection plans approved by REC, which will then reimburse the expenses. At present, free new electricity connections are provided only to below poverty line households.