Government Accelerates Smart Meter Deployment Under RDSS Scheme

India’s push to modernise its power distribution network has crossed a significant milestone, with 3.46 crore smart electricity meters installed across the country as of June 30, 2025. The update was shared in the Rajya Sabha by Minister of State for Power, Shripad Yesso Naik.

Out of the total installed meters, 2.27 crore were deployed under the Revamped Distribution Sector Scheme (RDSS), the Centre’s flagship reform initiative aimed at improving the operational and financial efficiency of electricity distribution companies (discoms). The remainder were installed under earlier government schemes.

According to the minister, a total of 20.33 crore smart meters have been sanctioned under RDSS, with installation expected to be completed by March 2028, which marks the end of the scheme period. The programme aims to ensure universal smart metering across all consumer categories.

The RDSS has an overall outlay of INR 3.03 lakh crore, including INR 97,631 crore in Gross Budgetary Support from the Centre. Of this, INR 1.51 lakh crore has been sanctioned for infrastructure upgrades focused on reducing Aggregate Technical and Commercial (AT&C) losses. These upgrades include substation modernization, replacement of conductors and transformers, and feeder segregation projects.

Official figures show steady improvement in discom performance. AT&C losses, which reflect the gap between electricity supplied and revenue realised, have dropped from 21.91 percent in FY21 to 16.12 percent  in FY24, a decline credited to reforms under RDSS and other policy initiatives.

To enforce accountability, the release of central funds under RDSS is linked to specific performance parameters. These include timely filing of tariff petitions, publication of audited financial statements, and clearance of state subsidy and departmental dues.

The government has also implemented several complementary policy measures to support the financial viability of discoms. These include rules for timely subsidy disbursal, mechanisms for passing through fuel and power purchase costs, and performance-based borrowing limits for states. Additionally, prudential norms have been introduced to guide lending to state-run power utilities.

In a separate update, the Ministry of Power reported a national peak power deficit of just 0.3 percent in June 2025, underscoring improved adequacy in electricity supply across the grid.