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On June 30, 2021, the Union cabinet headed by Prime Minister Narendra Modi, approved Reforms-based and Results-linked, Revamped Distribution Sector scheme for strengthening the supply infrastructure in power sector. Under this scheme, quality and affordability of power supply to the consumers will be focused upon. This scheme aims at increasing the efficiency and financial sustainability of all government DISCOMs/ Power departments. It excludes the private sector DISCOMs. The Central government will provide financial assistance to the eligible DISCOMs to strengthen the supply infrastructure and provide quality and reliability to the consumers. Total outlay of the scheme is Rs. 3,03,758 crores.
Overview:
| Scheme name: | Reforms-based and Results-linked, Revamped Distribution Sector scheme |
| Scheme under: | Central Government |
| Approval Date: | June 30, 2021 |
| Primary Benefit: | Financial assistance from central government to the eligible government DISCOMs |
| Scheme Objective: | To improve operational efficiency and financial sustainability of all the government power departments thereby ensuring quality and affordable power supply to the consumers |
Objectives and Benefits:
- This scheme aims to provide quality, reliable and affordable power supply to the consumers
- It aims at increasing the operational efficiency of the government DISCOMs/ power departments across the country
- It will tend to increase financial sustainability of the power departments
- Artificial intelligence will be used for data analysis and management
- It aims to improve electricity supply for the farmers
- Consumer meters, system meters, feeders, etc will be used for maximum efficiency
- This scheme tends to ensure consumer benefit at priority thereby empowering them
- This scheme tends to increase employment opportunities for the youth
- It will enable an efficient mechanism of the power distribution sector in the country
Key Points:
- Central government has come up with a new scheme named Reforms-based and Results-linked, Revamped Distribution Sector for increasing the operational efficiency of DISCOMs/ power departments thereby ensuring consumer benefit
- This scheme got approval from the Union cabinet headed by PM Narendra Modi on June 30, 2021
- Under this scheme, central government will provide financial assistance to the eligible DISCOMs for building a stronger supply infrastructure
- It will exclude the private sector DISCOMs
- Certain eligibility parameters will be set for the DISCOMs and those fitting as per those parameters will be eligible for the assistance
- Under this scheme, one single action plan will not be chalked out and all the states will have a free hand to prepare and implement their own plan
- This scheme converges with Pradhan Mantri Kisan Urja Suraksha Evam Utthan Mahabhiyan scheme
- It aims at improving the electricity supply to the farmers
- It tends to provide daytime electricity to farmers through solarization
- Artificial Intelligence will be used more in managing the data and processes
- Consumer meters, system meters, feeders, etc will be used for maximum efficiency
- It aims at benefiting the consumers with reliable and affordable supply thereby empowering them
- It will generate also new employment opportunities
- North eastern states of Sikkim and State/ Union Territory of Jammu & Kashmir, Ladakh, Himachal Pradesh, Uttarakhand, Andaman and Nicobar Islands and Lakshwadweep will be treated as special category states and will be provided with additional special incentive
- Total outlay of the scheme is Rs. 3,03,758 crores
