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GOVERNMENT POLICIES AND SCHEMES - August 2022

Aug 2022

Aug 01, 2022

PM Launches Power Ministry's Flagship Revamped Distribution Sector Scheme

  • Prime Minister Narendra Modi launched the 'revamped distribution sector scheme' to improve the operational efficiency and financial sustainability of power distribution companies.
  • The ministry of power's flagship revamped distribution sector scheme is aimed at improving the operational efficiencies and financial sustainability of the discoms and power departments. With an outlay of over Rs. 3 trillion over a period of five years from FY 2021-22 to FY 2025-26, the scheme aims to provide financial assistance to DISCOMS for modernization and strengthening of distribution infrastructure, focussing on the improvement of the reliability and quality of supply to end consumers.
  • The scheme also aims to reduce the AT&C (aggregate technical and commercial) losses to pan-India levels of 12-15% and the ACS-ARR (average cost of supply-average revenue realized) gap to zero by 2024-25 by improving the operational efficiencies and financial sustainability.
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