Revamped Distribution Sector Scheme: Improving operational efficiency of DISCOMs
Channel: Narendra Modi
Date: 2022-07-30

In a historic initiative, Prime Minister Narendra Modi launched the Ministry of Power’s flagship Revamped Distribution Sector Scheme, which is aimed at improving the operational efficiencies and financial sustainability of the DISCOMs and Power Departments. With an outlay of over Rs. 3 lakh crore 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 improvement of the reliability and quality of supply to end consumers. It also aims to reduce the AT&C (Aggregate Technical and Commercial) losses to pan-India levels of 12-15% and ACS-ARR (Average Cost of Supply - Average Revenue Realized) gap to zero by 2024-25 by improving the operational efficiencies and financial sustainability of all state-sector DISCOMs and Power Departments.

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