Thirty-nine discoms submit draft distribution overhaul proposals

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Thirty-nine of the 55 discoms submitted their draft proposals under the Revamped Distribution Sector Scheme (RDSS). Reform measures are aimed at reducing losses, implementing smart prepaid meters, 100% energy accounting at the feed level by FY 23, upgrading billing and others. IT / OT systems.

The RDSS seeks to improve the operational efficiency and financial viability of Discoms / Power utilities by providing financial assistance to DISCOMs for the modernization and strengthening of distribution infrastructure, aimed at improving the reliability and quality of the supply of end consumers, the Energy Department said in a statement.

Thirty-nine of the 55 beneficiary Discoms (REC and PFC nodal agencies) have already submitted their draft proposals and are in active discussion with the nodal agencies for their finalization, while the remaining Discoms are also expected to send their proposals shortly, he said. -he adds.

States’ action plans include multiple reforms aimed at reducing losses, the implementation of smart prepaid meters for a majority of their consumer base, 100% energy accounting at the power supply level. Exercise 23, re-conduction of old / frayed conductors, bifurcation of power supplies and upgrading of billing and other IT / OT systems, in addition to work to improve the quality and reliability of the ‘supply.

As part of these plans, states also committed to ensuring the financial viability of Discoms, such as liquidation of grants and contributions from overdue government departments, implementation of tariff reforms, measures to improve consumer services, etc. These proposals would henceforth be submitted to the Monitoring Committee set up by the Ministry of Energy for approval.

The RDSS has an expenditure of Rs 3.03 lakh crore with an estimated central government budget support of Rs 97,631 crore, which would be available until fiscal year 2025-26.

The assistance is linked to the reforms and will be based on the fulfillment of the prequalification criteria as well as on the achievement of the performance criteria by the evaluated DISCOMs, on the basis of an agreed and personalized evaluation framework linked to the financial improvements. and operational. The unique feature of the program is that its implementation is based on the action plan developed for each state to resolve state specific issues rather than a single approach.

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