How to create a better power distribution network

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Last Updated07/02/2022

RDSS’s outlay of Rs 3 lakh crore for five years can enable financially-strained electricity distribution companies to overhaul.
The Revamped Distribution Sector Reform Scheme (RDSS) is the latest of many central government grant-based programs towards electricity distribution network investments.

Launched: 2021
It will provide conditional financial assistance to strengthen the supply infrastructure of discoms (power distribution companies).
The financial assistance will be based on meeting pre-qualifying criteria and upon achievement of basic minimum benchmarks.
Implementation: It would be based on the action plan worked out for each state rather than a ‘one-size-fits-all’ approach.
Nodal Agencies: Rural Electrification Corporation and Power Finance Corporation.
Umbrella Scheme: It will subsume all the existing power sector reforms schemes such as Integrated Power Development Scheme, Deen Dayal Upadhyaya Gram Jyoti Yojana, and Pradhan Mantri Sahaj Bijli Har Ghar Yojana.
Tenure: The scheme will be available till 2025-26.

Reduction of AT&C losses (operational losses due to inefficient power system) to pan-India levels of 12-15% by 2024-25.
Reduction of the cost-revenue gap to zero by 2024-25.
Improvement in the quality, reliability, and affordability of power supply to consumers through a financially sustainable and operationally efficient distribution sector.

Consumer Meters and System Meters: The scheme involves a compulsory smart metering ecosystem across the distribution sector—starting from electricity feeders to the consumer level, including in about 250 million households.
It is proposed to install approximately 10 crore prepaid Smart Meters by December 2023 in the first phase.
Feeder Segregation: The scheme also focuses on funding for feeder segregation for unsegregated feeders, which would enable solarization under the PM-KUSUM Scheme.
Solarization of feeders will lead to cheap/free daytime power for irrigation and additional income for the farmers.
Modernization of Distribution system in Urban Areas: Supervisory Control and Data Acquisition (SCADA) in all urban areas. Rural and Urban area System strengthening.

Strengthen rural networks to meet growing demand.
Increased supply hours, appliance usage and the needs of rural enterprises will need more network investment
Separate feeders for agricultural consumers are needed to address farmers’ demand for reliable supply.
Eliminate Cross Subsidization: Need to ensure effective enforcement of rationalization of cross-subsidy.
Covering up AT&C Losses: To manage the demand for power, it is necessary to introduce 100% metering-net metering, smart meters, and metering of electricity supplied to agriculture.
Cross-Border Trade: The government needs to actively promote cross-border electricity trade to utilize existing/upcoming generation assets. The SAARC electricity grid is a step in the right direction.