DPRs worth Rs.2.52 trillion approved under RDSS so far

 

 

Detailed project reports (DPRs) for projects worth Rs.2,52,252 crore (around Rs.2.52 trillion) have been approved under the Revamped Distribution Sector Scheme (RDSS) so far, it was informed in Parliament.

In a written reply given recently in the Rajya Sabha, Union power minister R.K. Singh said that DPRs worth Rs.2,52,252 crore have been approved under RDSS since the launch of the scheme on June 30, 2021 up to December 6, 2023.

The aggregate value of DPRs approved, which can also be interpreted as project cost/outlay sanctioned, includes Rs.1,21,778 crore for loss-reduction works and Rs.1,30,474 crore for smart metering. Loss-reduction works typically covers infrastructure upgrade to the power distribution network.

The overall sanctioned outlay will involve gross budgetary support (GBS) of Rs.1,02,059 crore, inclusive of Rs.77,920 crore for loss-reduction works and Rs.24,139 crore for smart metering. (See table)

Tamil Nadu, Uttar Pradesh, Maharashtra, West Bengal and Gujarat (in that order) are the top five states in terms of smart metering project outlay approved. In terms of loss-reduction works leading states are, in serial order: Uttar Pradesh, Maharashtra, Madhya Pradesh, Rajasthan and Andhra Pradesh.

Of the total sanctioned cost under RDSS, Rs.5,897 crore has been released so far by the Central government as part of the GBS, so far. Of this, nearly Rs.1,000 crore has been released for state government discoms in Uttar Pradesh.

RDSS involves the nationwide rollout of 20.33 crore meters including 19.79 crore consumer prepaid smart meters, 52.18 lakh DT (distribution transformer) meters and 1.88 lakh feeder meters. Launched on June 30, 2021, RDSS has an overall outlay of Rs.3,03,758 crore, including GBS of Rs.97,631 crore, and will spread over the period FY22 to FY26. [It appears that the originally envisaged GBS of Rs.97,631 crore will be exceeded, going by the fact that  Rs.1,02,059 crore of GBS has already been approved, as discussed in this story.]

 

RDSS objectives

The target of RDSS is to reduce the AT&C losses to pan-India levels of 12-15 per cent and eliminate the ACS-ARR gaps, by 2024-25. In FY22, India’s AT&C losses stood at 16.44 per cent, down from 22.32 per cent in FY21. On the same lines, the gap between ACS and ARR declined from Rs.0.69 per kwh in FY21 to Rs.0.15 per kwh in FY22. [ACS = Average cost of supply, ARR = Average revenue realization]