What is the proposed budget increase for the Revamped Distribution Sector Scheme (RDSS)?

The government is considering increasing the annual allocation for the RDSS to ₹18,000 crore for the financial year 2026-27.

How much cumulative debt do Indian power distribution companies have?

Power distribution companies in India are burdened with a cumulative debt exceeding ₹7 trillion.

What is the role of smart meters in India's power sector reforms?

Smart meters improve billing accuracy, reduce power theft, and enhance financial stability for distribution companies.

Home / Business and Economy / Power Discoms Eye ₹18,000 Crore Boost for Revival

Power Discoms Eye ₹18,000 Crore Boost for Revival

23 Jan

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Summary

Proposed ₹18,000 crore allocation for RDSS aims to aid strained power companies.
Smart meter installation is accelerating at 1.5 lakh meters monthly.
Discoms cumulative debt exceeds ₹7 trillion despite ongoing reform efforts.

Power Discoms Eye ₹18,000 Crore Boost for Revival

The government is considering a substantial increase in the annual allocation for the Revamped Distribution Sector Scheme (RDSS), proposing ₹18,000 crore for the upcoming financial year 2026-27. This move comes as power distribution companies (discoms) grapple with a cumulative debt exceeding ₹7 trillion. The scheme, launched in 2021, seeks to enhance the efficiency and financial sustainability of the power distribution sector.

Smart meter installations are reportedly gaining momentum, with approximately 1.5 lakh meters being installed each month, underscoring the need for increased funding. For the current financial year ending March 31 (FY26), the RDSS was allocated around ₹16,000 crore. Past government initiatives like Ujjwal Discom Assurance Yojana (UDAY) and proposed measures such as the Electricity Amendment Bill, 2025, aim to reform the sector.