RDSS: UP, Andhra Biggest Beneficiaries of Discom Infra Revival Funds

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The latest data from the Ministry of Power claimed that Uttar Pradesh and Andhra Pradesh emerged as the biggest beneficiary of the Revamped Distribution Sector Scheme (RDSS). This scheme is meant to revive the discoms’ health by taking corrective measures with financial aid from the Union government.

The data suggested that out of all the Indian states, the ministry sanctioned the highest Gross Budgetary Support of Rs 10,253 crore to Uttar Pradesh (UP) for infrastructure, including works like loss reduction and the cost of Project Management Agency (PMA). The data claimed that the state also received a total of Rs 688 crore under the scheme for this segment, the highest receipt by any state. It was in addition to the funds from other scheme segments, like smart metering, etc.

The data claimed that Andhra Pradesh was the second in India to receive the highest allocation under the scheme. It received around Rs 466 crore under this segment of the scheme. It was followed by Maharashtra, which had received a total of Rs 423 crore. Others that followed the list included Madhya Pradesh (Rs 277cr), Tamil Nadu (Rs 267cr) and Rajasthan (263cr).

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RDSS was launched in 2021 to transform the electricity distribution sector. The estimated outlay of the scheme is Rs. 3,03,758 Crore, with a Gross Budgetary Support (GBS) of Rs 97,631 crore from the Union government. The scheme’s main objective is to improve the distribution sector’s operational efficiencies and financial sustainability to facilitate 24×7 quality and reliable power for all at affordable prices. The scheme envisages reducing the AT&C (Aggregate Technical and Commercial) losses to 12-15% at the pan-India level and the ACS-ARR gap to zero by 2024-25.

The scheme provides financial assistance to discoms to implement prepaid smart metering for consumers and strengthen distribution infrastructure. According to the ministry documents, the average AT&C loss of distribution utilities in the country has reduced from 22.32% in FY 2020-21 to 16.44% in FY 2021-22.

All these have resulted in a reduction of the ACS-ARR gap for discoms too. The ACS-ARR gap has also significantly reduced from Rs. 0.69/kWh in FY 2020-21 to Rs. 0.15/kWh in FY 2021-22.

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