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Thirty-nine out of the 55 discoms have submitted their draft proposals under the Revamped Distribution Sector Scheme (RDSS). The reform measures aim at loss reduction, implementation of smart prepaid metering, 100 per cent feeder level energy accounting by FY23, upgradation of billing and other IT/ OT systems.
The RDSS seeks to improve the operational efficiency and financial sustainability of state-owned Discoms/ Power Departments by providing financial assistance to DISCOMs for modernisation and strengthening of distribution infrastructure, aimed at improvement the reliability and quality of supply to end-consumers, the Power Ministry said in a statement.
Thirty-nine of the 55 beneficiary Discoms (nodal agencies REC and PFC) have already submitted their draft proposals and are in active discussion with nodal agencies for their finalisation, while the remaining Discoms are also expected to send their proposals shortly, it added.
The action plans from the states include multiple reforms aimed at loss reduction, implementation of smart prepaid metering of a majority of their consumer base, 100 per cent feeder level energy accounting by FY23, re-conductoring of old /frayed conductors, bifurcation of feeders and upgradation of billing and other IT/OT systems, in addition to works towards improving the quality and reliability of supply.
Under these plans, the states have also committed to ensure the financial viability of Discoms, such as liquidation of outstanding subsidy dues and government department dues, implementation of tariff reforms, measures to enhance consumer services, etc. These proposals would now be put forward to the Monitoring Committee set up by the Power Ministry for approval.
The RDSS has an outlay of Rs 3.03 lakh crore with an estimated budgetary support from the Central government of Rs 97,631 crore, which would be available till FY 2025-26.
The assistance is reforms-linked and will be based on meeting pre-qualifying criteria as well as upon achievement of performance benchmarks by DISCOMs evaluated, based on an agreed and customised evaluation framework tied to financial and operational improvements. The unique feature of the scheme is that its implementation is based on the action plan worked out for each state to address state specific issues rather than a one-size-fits-all approach.
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