Centre Releases INR 37,000 Crore Under Revamped Distribution Sector Scheme

The Centre has released nearly INR 37,000 crore so far under the Revamped Distribution Sector Scheme (RDSS), accounting for around 38 percent of the total sanctioned Gross Budgetary Support aimed at strengthening India’s power distribution network.

The update was shared by Minister of State for Power Shripad Yesso Naik in a written reply in the Lok Sabha.

The scheme, designed to improve the reliability and quality of electricity supply through financially sustainable DISCOMs, links fund disbursal to strict milestone achievements. Each state and DISCOM is evaluated through a customised action-plan framework before funds are released.

The Ministry of Power confirmed that no claims from any state for distribution infrastructure works are currently pending approval, an indication of streamlined processing under the scheme.

State-wise sanctions and releases for FY 2023–24, FY 2024–25 and FY 2025–26 reflect varied progress across the country, with major allocations directed to Uttar Pradesh, Maharashtra, Rajasthan, Madhya Pradesh, Tamil Nadu and Andhra Pradesh, among others.