Power Sector’s Revamped Distribution Sector Scheme
Source : PIB
GS II : Infrastructure: Energy, Ports, Roads, Airports, Railways etc

What is discussed under Power Sector’s Revamped Distribution Sector Scheme ?

1. About the Scheme
2. Features of the Scheme
3. Major Components
4. Other Reforms and Schems in power sector

Why in News ?

Prime Minister participated in the Grand Finale marking the culmination of Ujjwal Bharat Ujjwal Bhavishya – Power @2047 and launched the Revamped Distribution Sector Scheme.

Key Facts

Background

• • The Cabinet Committee on Economic Affairs recently authorised a Rs. 3 lakh crore Reforms-based and Results-Linked Revamped Distribution Sector Scheme, with the Centre contributing Rs. 97,631 crore.
  • Aims to improve the operational efficiencies and financial sustainability of discoms (excluding Private Sector DISCOMs).

Features of the Scheme

• • This is a conditional financial assistance to strengthen the supply infrastructure of discoms which is available till 2025-26.

    

  • Rural Electrification Corporation and Power Finance Corporation is the implementation agency.
  • Financial aid will be granted depending on satisfying pre-qualifying requirements and reaching basic minimal standards.
  • The merged Scheme are 
    • Integrated Power Development Scheme
    • Deen Dayal Upadhyaya Gram Jyoti Yojana
    • Pradhan Mantri Sahaj Bijli Har Ghar Yojana
  • Implementations based on the action plan worked out for each state rather than a ‘one-size-fits-all approach.
  • North-Eastern State of Sikkim and States/Union Territories of Jammu & Kashmir, Ladakh, Himachal Pradesh, Uttarakhand, Andaman & Nicobar Islands, and Lakshadweep will be treated as Special Category States.

Do you Know 4Es
‘4 Es’ in the Revised Tariff Policy : The 4Es include Electricity for all, Efficiency to ensure affordable tariffs, Environment for a sustainable future, Ease of doing business to attract investments and ensure financial viability.

What are the major objectives behind the scheme ?

• • Reduction of AT&C losses to pan-India levels of 12-15% by 2024-25.
  • Reduction of cost-revenue gap to zero by 2024-25.
  • Developing Institutional Capabilities for Modern DISCOMs.
  • Other focus being on making affordable power available for all.

Major Components

• • Rural and Urban area System strengthening in the power sector.
  • Funding for feeder segregation for unsegregated feeders
  • Compulsory smart metering ecosystem across the distribution sector—starting from electricity feeders to the consumer level.

About Ujjwal Bharat Ujjwal Bhavishya – Power @2047

• • Organised across the country it showcases the transformation in the power sector achieved in the last eight years.
  • It aims to empower citizens by improving their awareness and participation in various power-related initiatives, schemes and programmes of government.

Recent projects supporting Electrification

• • Ramagundam Floating Solar Project in Telangana and the 92 MW Kayamkulam Floating Solar Project in Kerala.
    • Ramagundam project is India’s largest floating solar PV project with 4.5 lakh ‘Made in India’ solar PV modules. Kayamkulam project is the second largest floating solar PV project consisting of 3 lakh ‘Made in India’ solar PV panels floating on water.
  • Green Hydrogen Mobility Project at Leh
    • Ladakh is a pilot project and aims for five Fuel Cell Buses to be run in and around Leh.
    • This pilot project would be the first deployment of Fuel Cell Electric Vehicles for public use in India.
    • The Green Hydrogen Blending Pilot Project at NTPC Kawas Township will be India’s first Green Hydrogen Blending Project helping in reducing the usage of natural gas.

Electrification of about 18,000 villages which did not have access to power earlier signified the commitment of the government towards ensuring last mile outreach.

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