Uttar Pradesh, Maharashtra and Tamil Nadu are the top three states with respect to project cost sanctioned under the Revamped Distribution Sector Scheme (RDSS).
According to an analysis done by T&D India based on a reply given in the Lok Sabha on November 28, 2024, Uttar Pradesh was the leading state with Rs.40,568 crore worth of projects sanctioned under RDSS. Maharashtra came second with Rs.32,424 crore, followed by Tamil Nadu with Rs.28,803 crore worth of projects sanctioned under RDSS.
As can be seen from the given table, the top 10 states with respect to project cost sanctioned under RDSS accounted for nearly 80 per cent of the total Rs.2,77,136 crore sanctioned under the Centrally-backed scheme.
This total project cost sanctioned includes Rs.1,17,500 crore worth of gross budgetary support (GBS), representing 42.4 per cent of the total project cost.
The gross budgetary support (GBS) available to the top ten states stood at Rs.83,820 crore, accounting for 71 per cent of the total GBS under RDSS.
Speaking of the top three states, GBS covers 40.6 per cent of the total project cost sanctioned with respect to Uttar Pradesh and Maharashtra. For Tamil Nadu, this metric is somewhat lower at 31.7 per cent.
It was informed in Parliament that sanctioned works (smart metering and loss reduction) are at various stages of implementation with the total physical progress currently standing at around 17 per cent.
Meanwhile, it is independently learnt, that of the total 22.24 crore consumer smart meters sanctioned under RDSS, a total of 1.68 crore were installed up to November 27, 2024.
Objective of RDSS
Launched in July 2021, RDSS has a total project outlay of Rs.3,03,758 including GBS of Rs.97,631 crore (or 32 per cent of the total outlay). It is learnt that 48 state government-owned distribution utilities spanning 30 states and Union territories are participating in RDSS.
The main objective of RDSS is to support distribution utilities to improve the operational efficiencies and financial sustainability of distribution sector so as to provide quality and reliable supply of power. The scheme envisages reducing the Aggregate Technical & Commercial (AT&C) Losses to 12-15 per cent at pan-India level and the gap between Average Cost of Supply and Average Revenue Realised (ACS-ARR) to zero by end of FY25.
Scheme duration
RDSS is expected to run for a five-year period from FY22 up to FY26, which is from April 1, 2021 to March 31, 2026.
Nodal agencies
Power Finance Corporation Ltd (PFC) and its subsidiary REC Ltd have been appointed as nodal agencies for RDSS. Of the top ten states seen in the table, six have been assigned to PFC and four (Uttar Pradesh, Tamil Nadu, Rajasthan and West Bengal) are under REC’s purview.
Financial assistance
The maximum financial assistance for loss reduction works given to a power distribution utility is 60 per cent of the approved project cost, while for special category states it is limited to 90 per cent. Further, grant is also provided for smart metering works, as per the scheme guidelines, based on number of feeders, distribution transformers and consumers proposed to be metered.
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