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Revamped Distribution Sector Scheme (RDSS)

Revamped Distribution Sector Scheme (RDSS):

PM Modi will launch the ministry of power’s flagship Revamped Distribution Sector Scheme (RDSS) on July 30, 2022.The scheme is aimed at improving the operational efficiencies and financial sustainability of the power distribution companies (discoms).

  • The scheme, with an outlay of over Rs 3.03 trillion in five years to FY26, will enable discoms to modernise and strengthen the distribution infrastructure and improve the reliability and quality of supply of power to end consumers.
  • It also aims to reduce the AT&C (aggregate technical and commercial) losses to pan-India levels of 12-15% and ACS-ARR (average cost of supply-average revenue realised) gap to zero by 2024-25.
  • REC and PFC have been nominated as nodal agencies for the scheme.
  • RDSS mandates compulsory installation of smart meters across the country.
  • The Centre has set an ambitious target of installing 250 million smart meters by 2025.
  • With this new scheme coming into force, all other previous schemes such as Integrated Power Development Scheme, Deendayal Upadhyaya Gram Jyoti Yojana and Ujjwal Discom Assurance Yojana (UDAY) would stand subsumed.