Lok Sabha Question No. 844 (UNSTARRED), answered on 2025-07-24
Subject: Smart Meters installed under RDSS
Ministry: POWER
Asked by: Shri Dhaval Laxmanbhai Patel

## GOVERNMENT OF INDIA MINISTRY OF POWER

## LOK SABHA UNSTARRED QUESTION NO.844 ANSWERED ON 24.07.2025

## SMART METERS INSTALLED UNDER RDSS

## 844.   SHRI DHAVAL LAXMANBHAI PATEL:

Will the Minister of POWER be pleased to state:

- (a) the  total  number  of  smart  meters  installed  under  the  Revamped  Distribution Sector Scheme (RDSS) till July, 2025 in the country including Gujarat;
- (b) whether smart metering has improved billing efficiency in distribution companies such as Dakshin Gujarat Vij Company Limited (DGVCL) and Paschim Gujarat Vij Company Limited (PGVCL) in southern Gujarat and if so, the details thereof; and
- (c) the steps being taken by the Government to support the financial viability of distribution companies in Tier-II and Tier-III towns like Valsad where revenue collection is historically low?

## A N S W E R

## THE MINISTER OF STATE IN THE MINISTRY OF POWER

(SHRI SHRIPAD NAIK)

(a) : Under  the  Revamped  Distribution  Sector  Scheme  (RDSS),  20.33  crore  smart meters have been sanctioned in 28 States/ UTs, out of which 2.41 crore smart meters have been installed as on 15.07.2025. For the state of Gujarat, 1.67 crore smart meters have been sanctioned under RDSS, out of which 20.94 lakh smart meters have been installed as on 15.07.2025.

(b) : Smart meters help the distribution utilities in improving their billing efficiency as below:

- i. Provide real-time data, eliminating the need for estimated readings, which can lead to billing inaccuracies.
- ii. Automated  data  collection  process  minimizes  human  error  associated  with manual meter reading and billing.
- iii. Help identify and prevent electricity theft, ensuring that utilities recover revenue for all energy consumed.

As reported by the utilities of the State of Gujarat, the smart meter installations are currently in its initial implementation phase and complete saturation of divisions are under progress.  The improvement in the operational parameters of the Gujarat utilities can be assessed once the saturation in specific areas is complete.

………..2.

(c) : Government of India (GoI) has been supporting the States/ distribution utilities to improve their performance through various initiatives. Some of the key initiatives taken are as under:

- i. Revamped Distribution Sector Scheme (RDSS) was launched with the objective of improving the quality and reliability of power through a financially sustainable and operationally efficient Distribution Sector. The release of funds under the scheme is linked to States/ distribution utilities taking necessary measures for improving  their  performance  against  specified  parameters  including  the  Gap between average cost of supply and average revenue realized i.e. ACS-ARR Gap and the Aggregate Technical & Commercial (AT&C) losses.
- ii. Allowing  additional  borrowing  space  of  0.5%  of  GSDP  to  the  State  if  the distribution utility implements loss reduction measures.
- iii. Additional  Prudential  Norms  have  been  specified  for  sanctioning  of  loans  to State  owned  Power  Utilities  which  is  contingent  on  performance  of  Power Distribution Utilities against prescribed parameters.
- iv. Rules for implementation of Fuel and Power Purchase Cost Adjustment (FPPCA) and cost reflective tariff to ensure all prudent costs for supply of electricity are passed through and are timely realised.

Above reform measures are to be implemented by States/ distribution utilities as a whole including Tier-II and Tier-III towns falling under the utility area. As a result of reform measures undertaken, the AT&C losses of distribution utilities at the national level has reduced from 21.91% in FY21 to 16.12% in FY24 and ACS-ARR Gap from Rs 0.69/ kWh in  FY21 to Rs 0.19/ kWh in FY24.

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