RDSS (Syllabus: GS Paper 3 – Economy)

Context: THE Awarding of smart meter contracts by the state-run electricity distribution utilities (discoms) has finally gathered pace under the Revamped Distribution Sector Scheme (FY22- 26).

Revamped Distribution Sector Scheme (RDSS)

• About: It will provide conditional financial assistance to strengthen the supply infrastructure of discoms (power distribution companies).
• Aim: To improve the operational efficiencies and financial sustainability of discoms (excluding Private Sector DISCOMs).
• Scheme Duration: Until 2025-26.
• Implementation: Based on individual state action plans, avoiding a 'one-size-fits-all' approach.
• Nodal Agencies: Rural Electrification and Power Finance.

Components

• Smart Metering Ecosystem: Mandatory smart metering from electricity feeders to consumer level, covering around 250 million households.
• Prepaid Smart Meters: Proposal to install approximately 10 crore prepaid Smart Meters by December 2023 in the first phase.
• Feeder Segregation for Solarization: Funding for feeder segregation, promoting solarization under the PM-KUSUM Scheme.
• Urban Distribution System Modernization: Implementation of Supervisory Control and Data Acquisition (SCADA) in all urban areas.
• Identified States and Union Territories: Recognition of Sikkim and special treatment for Jammu & Kashmir, Ladakh, Himachal Pradesh, Uttarakhand, Andaman & Nicobar Islands, and Lakshadweep.

Objectives

• To reduce Aggregate Technical and Commercial (AT&C) losses to pan-India levels of 12-15% by 2024-25.
• Targeting the reduction of the cost-revenue gap to zero by 2024-25.
• Focus on enhancing institutional capabilities for modern Distribution Companies (DISCOMs).