Lok Sabha Question No. 23 (UNSTARRED), answered on 2023-07-20
Subject: Revamped Distribution Sector Scheme
Ministry: POWER
Asked by: Dipsinh Shankarsinh Rathod, Mohanbhai Kalyanji Kundariya

## GOVERNMENT OF INDIA MINISTRY OF POWER

## LOK SABHA UNSTARRED QUESTION NO.23 ANSWERED ON 20.07.2023

## REVAMPED DISTRIBUTION SECTOR SCHEME

23. SHRI DIPSINH SHANKARSINH RATHOD: SHRI MOHANBHAI KALYANJI KUNDARIYA:

Will the Minister of POWER be pleased to state:

- (a) whether it is a fact that Revamped Distribution Sector Scheme (RDSS) has  specific  emphasis  on  improvement  of  energy  efficiency  for  the  Stateowned power distribution companies;
- (b) if  so,  the  details  thereof  along  with  the  funds  released  and  utilised under RDSS, discom-wise;
- (c) whether the State-owned power distribution companies are advised to assess and absorb advanced techniques of minimizing the transmission and distribution losses adopted by best performing power distribution companies;
- (d) if so, the details thereof; and
- (e) if not, the reasons therefor?

## A N S W E R

## THE MINISTER OF POWER AND NEW & RENEWABLE ENERGY

(SHRI R.K. SINGH)

- (a) & (b) : The  Revamped  Distribution  Sector  Scheme  (RDSS)-  A  Reform based and Results linked scheme, launched by the Government of India, in July  2021,  aims  at  transforming  the  electricity  distribution  sector.  The estimated outlay of the scheme is Rs. 3,03,758 Crore with Gross Budgetary Support (GBS) of Rs 97,631 crore from GoI. The main objective of the scheme is  to  improve  the  operational  efficiencies  and  financial  sustainability  of distribution sector so as to facilitate 24x7 quality and reliable power for all at  affordable  price.  The  scheme  envisages  target  of  reducing  the  AT&C losses to 12-15% at pan-India level and ACS-ARR gap to Zero by 2024-25.

The  scheme  provides  for  financial  assistance  to  DISCOMs  to implement  prepaid  smart  metering  for  consumers  and  strengthening  of distribution infrastructure based on a 2-tier evaluation framework comprising of  (i)  Pre-Qualification  Criteria  and  (ii)  Result  Evaluation  Matrix  of  various performance parameters with yearly targets. DISCOMs  to qualify for receiving grant funds under the scheme need to mandatorily comply with the pre-qualifying criteria and also achieve basic minimum benchmarks score of 60% as per Result Evaluation Matrix approved for each of the DISCOMs. The Pre-Qualification criteria include timely publishing of audited annual accounts and un-audited quarterly accounts, timely release of  subsidy  and government  department  dues  by  State/UT,  no  new  creation  of  regulatory assets,  pre-paid  metering  of  government  departments,  timely  payment  of GENCO dues and timely publishing of Tariff & True up Orders by Regulators. The Result Evaluation Matrix comprises of various performance parameters in four categories viz. i. Financial Sustainability, ii. Operational - Outcomes of infrastructure works,  iii. Infrastructure works  &iv.  Policy &  Structural Reforms, Capacity Building and IT/OT Enablement.

Reforms undertaken by DISCOMs under the scheme have started showing  the  desired  results  in  first  year  itself.  The  average  AT&C  loss  of distribution  utilities  in  country  has  reduced  from  22.32%  in  FY  2020-21  to 16.44%  in  FY  2021-22.  Similarly,  there  has  been  an  improvement  in  the average  revenue  realization  by  the  DISCOMs.  Timely  payments  of  subsidy and Govt. department dues by State Governments have also contributed to increased revenue. All these have resulted in reduction of ACS-ARR gap for DISCOMs. The ACS-ARR gap has also significantly reduced from Rs. 0.69/kWh in FY 2020-21 to Rs. 0.15/kWh in FY 2021-22. As a result, financial health of the  DISCOMs  is  improving  and  DISCOMs  are  in  much  better  position  to ensure quality and reliable power supply to its consumers.

The details of funds sanctioned and released is given in

Annexure.

(c) to (e) :   Under RDSS, It has been envisaged to leverage advance technologies  like  Artificial  Intelligence,  Machine  Learning  and  Blockchain Technology to analyze data generated through IT/OT devices to enable the DISCOMs to take informed decisions on loss reduction, demand forecasting, asset management,  Time  of  Day  (ToD)  tariff,  Renewable  Energy  (RE) Integration and for other predictive analysis. This would contribute a great deal towards enhancing operational efficiency and financial sustainability of the  DISCOMs.  Gross  Budgetary  Support  (GBS)  under  the  Scheme  would  be used for development of applications related to the use of advanced ICT like Artificial  Intelligence,  Machine  Learning  and  Blockchain  Technology  in  the Distribution Sector.

……….3.

In this regard, under Powerthon-2022, SINE-IIT Bombay has been appointed as Incubator by MOP. Key problem areas have been identified after discussions with DISCOMs.  Technology Service Providers (TSPs) with capacity to solve the problems were identified which includes Startups, NonStartups and individuals. Pilots were then conducted with DISCOMs with a corresponding problem statement.

Ministry of Power on a regular basis organizes Review, Planning & Monitoring Committee meetings which are attended by Principal Secretaries (Power) and CMDs/ MDs of Discoms of all States and UTs. In the meeting, States/ UTs who have adapted any good practice, showcases it to all other Discoms and the same can be adapted by any Discom for improving their efficiency.

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## ANNEXURE

## ANNEXURE REFERRED IN REPLY TO PARTS (a) & (b) OF UNSTARRED QUESTION NO.23 ANSWERED IN THE LOK SABHA ON 20.07.2023

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## Details of funds sanctioned and released under RDSS

| State/Discoms             | Sanctioned cost of metering (including PMA) (Rs. Cr.)   | Sanctioned Cost of Loss Reduction including PMA (Rs. Cr.)   | Sanctioned GBS of Metering Works (including PMA) (Rs. Cr.)   | Sanctioned GBS of Infrastructure (Loss Reduction) Works (including PMA) (Rs. Cr.)   | Released GBS of Infrastructure (Loss Reduction) Works (till date) (Rs. Cr.)   |
|---------------------------|---------------------------------------------------------|-------------------------------------------------------------|--------------------------------------------------------------|-------------------------------------------------------------------------------------|-------------------------------------------------------------------------------|
| Andaman & Nicobar Islands | 53.56                                                   | 462.01                                                      | 12.25                                                        | 415.81                                                                              |                                                                               |
| Andhra Pradesh            | 4,127.85                                                | 9,276.66                                                    | 815.40                                                       | 5,566.00                                                                            | 466.23                                                                        |
| Arunachal Pradesh         | 183.56                                                  | 799.99                                                      | 54.40                                                        | 719.99                                                                              | 35.47                                                                         |
| Assam                     | 4,049.54                                                | 2,609.10                                                    | 1,051.65                                                     | 2,348.19                                                                            | 198.86                                                                        |
| Bihar                     | 2,021.21                                                | 7,081.06                                                    | 412.33                                                       | 4,248.63                                                                            | 209.29                                                                        |
| Chhattisgarh              | 4,105.31                                                | 3,597.55                                                    | 804.43                                                       | 2,158.53                                                                            | 106.33                                                                        |
| Delhi                     | 13.38                                                   | 323.63                                                      | 2.03                                                         | 194.18                                                                              | 9.57                                                                          |
| Goa                       | 469.17                                                  | 247.08                                                      | 94.51                                                        | 148.25                                                                              | 7.30                                                                          |
| Gujarat                   | 10,641.96                                               | 6,021.48                                                    | 1,884.60                                                     | 3,612.89                                                                            | 244.87                                                                        |
| Haryana                   | 4,966.62                                                | 3,158.43                                                    | 909.36                                                       | 1,895.06                                                                            | 93.36                                                                         |
| Himachal Pradesh          | 1,788.49                                                | 1,774.90                                                    | 466.23                                                       | 1,597.41                                                                            | 84.81                                                                         |
| Jammu & Kashmir           | 1,063.62                                                | 4,635.57                                                    | 272.02                                                       | 4,172.01                                                                            | 206.78                                                                        |
| Jharkhand                 | 858.02                                                  | 3,262.27                                                    | 190.50                                                       | 1,957.36                                                                            | 96.42                                                                         |
| Kerala                    | 8,231.21                                                | 2,346.81                                                    | 1,413.34                                                     | 1,408.09                                                                            | 69.36                                                                         |
| Ladakh                    | -                                                       | 697.36                                                      |                                                              | 627.62                                                                              | 30.92                                                                         |
| Madhya Pradesh            | 8,768.98                                                | 9,403.43                                                    | 1,482.10                                                     | 5,642.06                                                                            | 277.93                                                                        |
| Maharashtra               | 15,214.95                                               | 14,157.92                                                   | 2,839.61                                                     | 8,494.75                                                                            | 423.67                                                                        |
| Manipur                   | 121.16                                                  | 400.98                                                      | 38.14                                                        | 360.88                                                                              | 17.78                                                                         |
| Meghalaya                 | 309.56                                                  | 796.49                                                      | 86.35                                                        | 716.84                                                                              | 35.31                                                                         |
| Mizoram                   | 181.61                                                  | 237.33                                                      | 61.08                                                        | 213.59                                                                              | 10.52                                                                         |
| Nagaland                  | 207.57                                                  | 391.18                                                      | 59.66                                                        | 352.06                                                                              |                                                                               |
| Puducherry                | 251.10                                                  | 84.39                                                       | 56.25                                                        | 50.63                                                                               | 2.49                                                                          |
| Punjab                    | 5,768.50                                                | 3,873.37                                                    | 959.80                                                       | 2,324.02                                                                            | 114.48                                                                        |
| Rajasthan                 | 9,714.80                                                | 9,371.41                                                    | 1,685.96                                                     | 5,622.85 237.25                                                                     | 263.43                                                                        |
| Sikkim                    | 97.45                                                   | 263.61                                                      | 30.43                                                        |                                                                                     | 11.69                                                                         |
| Tamil Nadu                | 19,235.36                                               | 9,066.27                                                    | 3,398.45                                                     | 5,439.76                                                                            | 267.97                                                                        |
| Tripura                   | 318.55                                                  | 484.56                                                      | 80.42                                                        | 436.10                                                                              | 21.48                                                                         |
| Uttar Pradesh             | 18,956.29                                               | 17,089.62                                                   | 3,500.57                                                     | 10,253.77                                                                           | 688.54                                                                        |
| Uttarakhand               | 1,050.92                                                | 1,447.39                                                    | 297.47                                                       | 1,302.65                                                                            | 64.17                                                                         |
| West Bengal               | 12,670.45                                               | 7,222.57                                                    | 2,089.18                                                     | 4,333.54                                                                            | 213.48                                                                        |
| Grand Total               | 135,440.72                                              | 120,584.40                                                  | 25,048.55                                                    | 76,850.78                                                                           | 4272.51                                                                       |

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