RDSS
RDSS
Government of India
Ministry of Power
The Union Minister for Power and New & Renewable Energy has informed Lok Sabha that the
Government of India launched Revamped Distribution Sector Scheme (RDSS) in July, 2021 with
the objective of improving the quality and reliability of power supply to consumers through a
financially sustainable and operationally efficient distribution Sector. Salient features of the
scheme are as under:
ii. The
scheme aims to reduce the AT&C losses to pan-India levels of 12-15% and ACS-
ARR (Average Cost of Supply - Average Realizable Revenue) gap to zero by 2024-
25.
iii. The
scheme has a duration of 5 years (FY 2021-22 to FY 2025-26). Sunset date of
scheme will be 31.03.2026.
iv. The
Scheme has two major components: Part ‘A’ – Financial support for Prepaid
Smart Metering & System Metering and upgradation of the Distribution Infrastructure
and Part ‘B’ – Training & Capacity Building and other Enabling & Supporting Activities.
v. Therelease of funds under the scheme has been linked to Results and Reforms. The
pre-qualifying criteria need to be mandatorily met with by the DISCOMs before they
can be evaluated for release of funds under the scheme.
Sl. State/Discoms Sanctioned Sanctioned Sanctioned Sanctioned
No. cost for Smart Cost of Loss GBS of GBS Loss
metering Reduction Metering Reduction
works works (Rs. Cr.) Works Works
(Rs. Cr.) (Rs. Cr.) (Rs. Cr.)
16 Madhya 8,768.98 9,403.43 1,482.10 5,642.06
Pradesh
REC Limited and Power Finance Corporation Limited (PFC) have been appointed as the Nodal
Agencies for the scheme and have been made responsible for facilitating the implementation of
the scheme in the entire country.
The details of allocation for States/ UTs between the Nodal agencies are as given below.
1. Maharashtra
2. Gujarat
3. Andhra Pradesh
4. Telangana
5. Kerala
6. Madhya Pradesh
7. Uttarakhand
8. Odisha
9. Jharkhand
10. Punjab
11. Haryana
13. Chandigarh
14. Delhi
15. Puducherry
16. Lakshadweep
1. Assam
2. Meghalaya
3. Arunachal Pradesh
4. Chhattisgarh
5. J&K
6. Ladakh
7. Goa
8. Tamil Nadu
9. Karnataka
10. Bihar
11. Rajasthan
16. Mizoram
17. Manipur
18. Nagaland
19. Tripura
As per the 'Report on Performance of Power Utilities' published annually by Power Finance
Corporation Ltd. (PFC), AT&C losses for distribution utilities, since the inception of Revamped
Distribution Sector Scheme (RDSS), i.e. from FY 2020-21 to FY 2021-22 is as under:
2020-21 2021-22
AT&C Loss in %
Delhi 8.87 8.12
Lakshadweep 11.63 -
Under RDSS, financial assistance would be provided for segregation of agriculture feeders from
mixed feeders where agriculture load is more than 30%. Thereafter, States/ DISCOMs would be
solarizing these segregated feeders under various other schemes like PM KUSUM.
States/DISCOMs are in the process of tendering and award of sanctioned works of segregation
of agricultural feeders under RDSS.
State-wise details of smart meters sanctioned under RDSS are as given below.
Gujarat 1,64,81,871 3,00,487 5,229
Ladakh - - -
i. DISCOMs would publish quarterly un-audited accounts within 60 days of the end of
each quarter during first two years of operation of the scheme (i.e. for FY 2021-22 and
FY 2022-23) and thereafter audited quarterly accounts within 45 days from 3rd year
onwards.
ii. Further,
DISCOMs would publish audited annual accounts by end of December of the
following year during first two years of operation of the scheme (i.e. for FY 2021-22
and FY 2022-23) and thereafter audited annual accounts by end of September of the
following year from 3rd year onwards.
iii. DISCOMs will have ensured that no new Regulatory Assets have been created in
latest tariff determination cycle.
iv. State
Government to ensure 100% payment of subsidy for the previous year and
advance payment of subsidy up to current period in line with section 65 of EA2003
and wipe out the remaining subsidy amount by the end of the project period.
vii. No.of days Payables to Creditors including Gencos for the year under evaluation is
equal to or less than the projected trajectory as per results evaluation framework.
viii. Tariff
order for the current year in which evaluation is being done and true up of
penultimate year has been issued and implemented w.e.f. 1st April of current FY.
1. Financial Sustainability 60
3. Infrastructure Works 10
Total 100
Utilities clearing the pre-qualifying criteria would be eligible for evaluation against the result
evaluation matrix, which would determine their eligibility for release of funds for a particular year.
The result evaluation framework would be different for each DISCOM and would be fixed for each
year depending on the cumulative performance as well as the annual performance.
The funds for a particular year will be released only if the Utility clears the pre-qualifying criteria
and the total weighted score is more than 60 marks on the evaluation matrix.
This information has been given by the Union Minister for Power and New & Renewable Energy
Shri R. K. Singh, in a written reply to a question, in Lok Sabha on August 10, 2023.
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