Revamped Distribution Sector Scheme (RDSS)

✦Key Features

• Budget: ₹3,03,758 crore over 5 years; 60% central share as loans/grants
• 25 crore smart prepaid meters for consumers (prevent meter tampering; accurate billing)
• DT (Distribution Transformer) metering: advanced metering infrastructure
• Target: AT&C losses below 12-15% nationally by 2025-26
• Feeder separation (agricultural vs non-agricultural) for better load management
• Replaces IPDS (Integrated Power Development Scheme) and DDUGJY (Deen Dayal Upadhyaya Gram Jyoti)
• Performance-based: DISCOMs get grants only on meeting AT&C loss targets

✓Eligibility Criteria

• All State-owned Distribution Companies (DISCOMs) and Power Departments.
• State-owned DISCOMs must meet pre-qualification criteria related to financial and operational transparency.
• Private sector DISCOMs are generally excluded from the financial assistance components.

★Benefits

• Financial assistance for the strengthening and modernization of the power distribution grid.
• Reduction of Aggregate Technical and Commercial (AT&C) losses to a level of 12-15% across India.
• Installation of smart prepaid meters for all consumers to improve billing and collection efficiency.
• Systemic outcome of improved financial health and operational sustainability of DISCOMs.

▶Application Process

• DISCOMs prepare an Action Plan and a Detailed Project Report (DPR) focusing on loss reduction and modernization.
• The Action Plan is approved by the State Government and then submitted to the Nodal Agency (REC or PFC).
• The Nodal Agency reviews the plan and presents it to the Monitoring Committee for final approval.
• Funds are released in installments based on the achievement of annual performance trajectories.

₹ Budget Allocation

303000

Funding Ratio (Centre:State): Grant component varies: 60% (General), 90% (Special Category States) upon milestone achievement.

Historical Context

Approved in 2021 with an outlay of ₹3,03,758 crore over five years, replacing and subsuming the DDUGJY and IPDS.