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The Ministry of Power, Government of India, had launched the Reforms-based and Results-linked, Revamped Distribution Sector Scheme (RDSS). It is a reform-based and results linked scheme.

About the Scheme:

• To improve the operational efficiencies and financial sustainability of State-owned DISCOMs/ Power Departments.
• It is to be done by providing result-linked financial assistance to DISCOMs for modernization and strengthening of distribution infrastructure, aiming at the improvement of the reliability and quality of supply to end consumers.
• The unique feature is that financial its implementation is based on the action plan for each state to address state-specific issues, rather than a “one-size-fits-all” approach.
• RDSS has an outlay of Rs.3,03,758 crore with an estimated budgetary support of Rs. 97,631 crores from the Central Government, which would be available till FY 2025-26.
• The Centre had announced that various rural and urban power projects under the Deen Dayal Upadhyaya Gram Jyoti Yojana and the Integrated Power Development Scheme would be subsumed in the RDSS.

Objectives:

• Reduction of annual technical and commercial (AT&C) losses to pan-India levels of 12-15% by
  2024-25.
• Reduction of ACS-ARR gap to zero by 2024-25.
• Developing Institutional Capabilities for Modern DISCOMs
• Improvement in the quality, reliability, and affordability of power supply to consumers through a financially sustainable and operationally efficient Distribution Sector.