Projects Worth INR 2.77 Lakh Cr Sanctioned Under RDSS for Loss Reduction and Smart Metering: Lal
Minister of Power Manohar Lal informed the Lok Sabha that projects worth INR 2.77 lakh crore have been sanctioned under the Revamped Distribution Sector Scheme (RDSS) to reduce losses and implement smart metering, achieving 17 percent progress so far.
November 29, 2024. By Mrinmoy Dey
Launched in July 2021 with a total outlay of INR 3,03,758 crore including gross budgetary support of INR 97,631 crore, the RDSS scheme aims to support DISCOMs/Power Departments to improve the operational efficiencies and financial sustainability of the distribution sector so as to provide quality and reliable supply of power.
The maximum financial assistance for loss reduction works given to utility under this scheme is 60 percent of the approved project cost, while for special category States it is limited to 90 percent. Further, the grant is also provided for smart metering works, as per the scheme guidelines, based on the number of feeders, distribution transformers and consumers proposed to be metered.
“The scheme envisages reducing the aggregate technical and commercial (AT&C) losses to 12-15 percent at pan-India level and the gap between the average cost of supply and average revenue realised (ACS-ARR Gap) to zero by 2024-25. The scheme duration is for 5 years i.e. FY 2021-22 to FY 2025-26 and 48 DISCOMs across 30 States/UTs have participated under RDSS,” mentioned a statement by the Ministry of Power.
It further noted that AT&C Losses and ACS-ARR Gap for a utility are the key financial and operational indicators of its performance. “Losses directly impact the cash flow and affect their financial position thereby forcing them to supply costly electricity to consumers. Reduction in AT&C losses and ACS-ARR Gap improves the finances of these utilities, which will enable them to better maintain the system and buy power as per requirements; benefitting the consumers,” it added.
To address these losses, mandatory pre-qualifying criteria have been prescribed under the scheme which include timely publishing of audited annual accounts and quarterly accounts, timely release of subsidy and Government department dues by States/UTs, no new creation of regulatory assets, pre-paid metering in Government establishments, timely payment of GENCO dues and timely publishing of tariff and true up orders. “Based on the performance of the utility against parameters mentioned under the Result Evaluation Matrix, which include achievement against major financial and operational parameters, they are evaluated. Thus, assistance has been linked to performance,” noted the statement.
Lal further stated that under SAUBHAGYA scheme, 2.86 crore households were electrified by March 31, 2022. In Maharashtra, 5,89,242 households were electrified, including 5,42,914 rural and 15,790 urban households via the grid, and 30,538 rural households through off-grid mode. The scheme was completed and closed on March 31, 2022. Under RDSS, the electrification of 9,036 households in Maharashtra has been sanctioned under PM-JANMAN and DA-JGUA schemes.
He further mentioned that other than the above-mentioned schemes, key initiatives to improve power distribution include the Late Payment Surcharge Rules 2022, FPPCA implementation, cost-reflective tariffs, additional borrowing space of 0.5 percent of GSDP for states tied to power sector reforms, and revised lending norms by PFC and REC based on utility performance.
“As a result of reform measures undertaken, the AT&C loss of distribution utilities at the national level has reduced from 25.5 percent in FY 2013 to 15.37 percent in FY 2023 and the ACS-ARR gap has reduced from INR 0.84/kWh in FY 2013 to INR 0.45/kWh in FY 2023. Further, the hours of supply for rural areas have improved from 12.5 hrs in FY 2014 to 21.9 hrs in FY 2024. Similarly, for urban areas it has improved from 22.1 hrs in FY 2014 to 23.4 hrs in FY 2024,” noted the statement
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