RDSS (Syllabus: GS Paper 3 – Economy)

News-CRUX-10     12th January 2024        
output themes

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.


  • 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.


  • 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).