Revamped Distribution Sector Scheme
Source : PIB
Economy

What we discuss under Revamped Distribution Sector Scheme ?

1. About the Revamped Scheme

Why in News ?

Union Cabinet has approved a Reforms-based and Results-linked, Revamped Distribution Sector Scheme.

Key Facts

• The Scheme seeks to improve the operational efficiencies and financial sustainability of all DISCOMs/ Power Departments excluding Private Sector DISCOMs by providing conditional financial assistance to DISCOMs for strengthening of supply infrastructure.
• The assistance will be based on meeting pre-qualifying criteria as well as upon achievement of basic minimum benchmarks by the DISCOM evaluated on the basis of agreed evaluation framework tied to financial improvements.
• Implementation of the Scheme would be based on the action plan worked out for each state rather than a one-size-fits-all approach.

About the Scheme

• The Revamped Distribution Sector Scheme aims to improve operational efficiencies and financial sustainability by

  

  providing result-linked financial assistance to DISCOMs for strengthening of supply infrastructure based on meeting pre-qualifying criteria and achieving basic minimum benchmarks.

• The Scheme would be available till the year 2025-26.
• REC and PFC have been nominated as nodal agencies for facilitating implementation of the Scheme.
• Scheme will have an outlay of Rs.3,03,758 crore with an estimated Gross Budgetary Support from Central Government of Rs.97,631 crore.
• It is proposed that the currently ongoing approved projects under the Schemes of IPDS, DDUGJY along with PMDP-2015 for the Union Territories of Jammu & Kashmir (J&K) and Ladakh would be subsumed in this Scheme.
• The savings of their GBS (approx. Rs. 17000 crore) would be part of the total outlay of the Revamped Distribution Sector Scheme under the existing terms and conditions till their sunset on 31″ March, 2022.
• The funds under these Schemes would be available for the identified projects under IPDS and for the approved ongoing projects under Prime Minister’s Development Program (PMDP) for the Union Territories of J&K and Ladakh under IPDS and DDUGJY till 31 March, 2023.
• Scheme Objectives
  • Reduction of AT&C losses to pan-India levels of 12-15% by 2024-25
  • Reduction of ACS-ARR gap to zero by 2024-25
  • Developing Institutional Capabilities for Modern DISCOMs
  • Improvement in the quality, reliability, and affordability of power supply to consumers through a financially
  • Sustainable and operationally efficient Distribution Sector

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