An analysis based on a Lok Sabha reply has revealed that Uttar Pradesh, Maharashtra, and Tamil Nadu are the top three states with the highest project cost sanctioned under the Revamped Distribution Sector Scheme (RDSS).
Uttar Pradesh leads with Rs 405.68 billion worth of projects sanctioned, followed by Maharashtra with Rs 324.24 billion and Tamil Nadu with Rs 288.03 billion.
The top ten states collectively account for nearly 80% of the Rs 2,771.36 billion total project cost sanctioned under the scheme. Of this, Rs 1,175 billion represents gross budgetary support (GBS), making up 42.4% of the total project cost. The GBS allocated to the top ten states is Rs 838.2 billion, 71% of the total GBS under RDSS. For Uttar Pradesh and Maharashtra, GBS covers 40.6% of their sanctioned costs, while for Tamil Nadu, it is slightly lower at 31.7%.
Launched in July 2021, RDSS aims to improve the operational efficiency and financial sustainability of power distribution utilities while ensuring reliable and quality power supply. The scheme targets reducing Aggregate Technical & Commercial (AT&C) losses to 12-15% and closing the gap between Average Cost of Supply and Average Revenue Realised (ACS-ARR) by FY25.
The scheme has sanctioned 22.24 crore consumer smart meters, of which 1.68 crore had been installed as of November 27, 2024. Overall, sanctioned works under RDSS are at various stages of implementation, with physical progress at approximately 17%.
Nodal Agencies and Financial Assistance
Power Finance Corporation (PFC) and REC Ltd serve as nodal agencies for RDSS, with six of the top ten states assigned to PFC and four to REC. The maximum financial assistance for loss reduction works is 60% of the approved project cost, rising to 90% for special category states. Additional grants are provided for smart metering based on specific criteria.
Scheme duration
RDSS is set to run from FY22 to FY26 (April 2021 to March 2026).