CrackitToday App

Revamped Distribution Sector Scheme : In News

Revamped Distribution Sector Scheme: In News

Installation of rooftop solar power plants is being expedited in Rajasthan under the Revamped Distribution Sector Scheme (RDSS) to reduce transmission and distribution losses and improve power supply quality.

  • It was launched by the Ministry of Power, Government of India to transform the electricity distribution sector.
  • It is a Reforms-based and Results-linked Scheme.
  • It seeks to modernise India’s power distribution sector through smart metering, network strengthening, and financial reforms, with the goal of creating financially sustainable and operationally efficient DISCOMs.
  • The scheme aims to reduce the Aggregate Technical and Commercial (AT&C) losses to pan-India levels of 12-15% and Gap between Average Cost of Supply (ACS) and Average Revenue Realised (ARR) to zero by 2024-25.
  • 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.