REVAMPED DISTRIBUTION SECTOR SCHEME (RDSS)
1. Context
Government of India launched the Revamped Distribution Sector Scheme (RDSS) with an outlay of Rs. 3,03,758 crore and estimated GBS from Central Government of Rs. 97,631 crore for the duration of 5 years i.e. from (FY 2021-22 to FY 2025-26). The Scheme aims to reduce the Aggregate Technical & Commercial (AT&C) losses to pan-India levels of 12-15% and Average Cost of Supply (ACS)-Average Revenue Realised (ARR) gap to zero by 2024-25.
The Kerala government is facing trouble over the Centre’s Revamped Distribution Sector Scheme (RDSS), which envisages pre-paid smart electricity meters in households and revamping the power distribution network in the country.
2.About RDSS Scheme
The Scheme has two major components:
Part ‘A’ – Financial support for Prepaid Smart Metering & System Metering and upgradation of the Distribution Infrastructure
Part ‘B’ – Training & Capacity Building and other Enabling & Supporting Activities
Financial assistance to DISCOMs is provided for upgradation of the Distribution Infrastructure and for Prepaid Smart Consumer Metering & System Metering based on meeting pre-qualifying criteria and achieving basic minimum benchmark in reforms.
3. Objectives of RDSS Scheme
The Revamped Distribution Sector Scheme (RDSS) is a government of India initiative to improve the operational efficiency and financial sustainability of distribution companies (DISCOMS) in the country. The scheme was launched in 2021 with an outlay of Rs. 3,03,758 crore over a period of 5 years.
The main objectives of RDSS are to:
- Reduce aggregate technical and commercial (AT&C) losses to 12-15% by 2024-25
- Eliminate the average cost of supply-average realised revenue (ACS-ARR) gap by 2024-25
- Improve the quality, reliability and affordability of power supply to consumers
4. Key takeaways
- The scheme is being implemented by the Ministry of Power through the Power Finance Corporation (PFC) and Rural Electrification Corporation (REC)
- The scheme has been sanctioned to 28 states and union territories. The states have started implementing the scheme and have achieved some initial success in reducing AT&C losses and improving the quality of power supply
- The RDSS is a major initiative by the government to improve the distribution sector in India. The scheme has the potential to significantly improve the efficiency and financial sustainability of DISCOMS, and to provide better quality and reliable power supply to consumers
Here are some of the key features of the RDSS:
- The scheme is result-linked, meaning that financial assistance is provided to DISCOMS only after they achieve certain pre-defined milestones.
- The scheme focuses on improving the efficiency of the distribution network, including the use of smart meters and other digital technologies.
- The scheme also includes a focus on improving the quality of power supply, including reducing outages and improving voltage levels.
The RDSS is a significant step forward in the government's efforts to improve the distribution sector in India. The scheme has the potential to make a major difference in the lives of millions of consumers by providing them with better quality and reliable power supply.
Source:pib
