Lok Sabha Question No. 2268 (UNSTARRED), answered on 2026-02-12
Subject: Primary Objectives of RDSS
Ministry: POWER
Asked by: Smt. Bharti Pardhi, Dr. Shrikant Eknath Shinde, Shri Ravindra Dattaram Waikar, Shri Shrirang Appa Chandu Barne, Shri Naresh Ganpat Mhaske

## GOVERNMENT OF INDIA MINISTRY OF POWER

## LOK SABHA UNSTARRED QUESTION NO.2268 ANSWERED ON 12.02.2026

## PRIMARY OBJECTIVES OF RDSS

2268.  SMT. BHARTI PARDHI: SHRI RAVINDRA DATTARAM WAIKAR: SHRI NARESH GANPAT MHASKE: SHRI SHRIRANG APPA CHANDU BARNE: DR. SHRIKANT EKNATH SHINDE:

Will the Minister of POWER be pleased to state:

- (a) the primary objectives of the Revamped Distribution Sector Scheme (RDSS) and manner in which it aims to reform and strengthen the distribution sector in the country;
- (b) the  expected  outcomes  of  the  scheme,  particularly  in  terms  of  reducing Aggregate Technical and Commercial (AT&C) losses and bridging the Average Cost of Supply-Average Revenue Realized (ACS-ARR) gap by 2025-26;
- (c) the key reforms being implemented under the RDSS to achieve the targets and the role of  Union Government and State Governments in this process till December, 2025;
- (d) the expected timeline for achieving the reduction in AT&C losses and ACS-ARR gap across the country and the monitoring mechanisms in place to track the progress; and
- (e) whether  any  additional  support  or  incentives  are  being  provided  to  power distribution companies under the scheme to ensure its successful implementation and sustainability and if so, the details thereof?

## A N S W E R

THE MINISTER OF STATE IN THE MINISTRY OF POWER

(SHRI SHRIPAD NAIK)

(a) to (e) : Government of India (GoI) launched the Revamped Distribution Sector Scheme (RDSS) in July 2021 with the objective of improving the quality and reliability of  power  supply  to  consumers  through  a  financially  sustainable  and  operationally efficient  distribution  Sector.  The  scheme  has  an  outlay  of  Rs.  3,03,758  Cr.  and estimated Gross Budgetary Support (GBS) from Central Government of Rs. 97,631 Cr. The sunset date of the scheme is 31.03.2028.

The  scheme  aims  to  reduce  Aggregate  Technical  and  Commercial  (AT&C) losses to pan-India levels of 12-15% and the gap between the Average Cost of Supply (ACS) and Average Revenue Realized (ARR) to zero.

……..2

Under the scheme, financial assistance is being provided to the Distribution Utilities  (excluding  Private  Sector  Utilities)  for  loss  reduction  and  smart  metering works. Projects worth Rs. 1.53 lakh crore for loss reduction and Rs. 1.3 lakh crore for smart metering works have been sanctioned under the scheme.

The  release  of  funds  under  the  scheme  is  contingent  on  improvement  in operational  and  financial  performance  of  the  utilities  which,  in  addition  to  other initiatives taken by GoI, has helped  in bringing discipline in payment of Government subsidies and Govt. department dues to the utilities, regular issuance of tariff order, publishing of accounts, non-creation of regulatory assets, etc.

Monitoring and review of works sanctioned under RDSS is being done by the Nodal  Agencies  namely  PFC  Ltd  and  REC  Ltd  on  a  regular  basis.  Further,  an institutional  mechanism  at  the  State  level  i.e.,  Distribution  Reforms  Committee headed by Chief Secretary of the State concerned, and at the Central level i.e., InterMinisterial Monitoring Committee headed by Secretary (Power), has been put in place under the RDSS guidelines to review and monitor the implementation of the works sanctioned under the Scheme.

In  addition  to  above,  support  for  Project  Management  Agency  (PMA)  for distribution  utilities  is  being  provided  under  the  scheme  for  covering  services  like planning, tendering, monitoring, and execution oversight.

As a result of various reforms undertaken under RDSS & other initiatives and with collective efforts of the Centre and States/UTs, the AT&C loss of distribution utilities at national level have reduced from 21.91% in FY21 to 15.04% in FY25 and ACS-ARR Gap has reduced from Rs. 0.69/kWh in FY21 to Rs. 0.06/kWh in FY25. It is envisaged  that  the  overall  scheme  objective  shall  be  achieved  by  the  end  of  the scheme period.

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