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Power Discoms Eye ₹18,000 Crore Boost for Revival
23 Jan
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.
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.
Experts suggest that higher funding is crucial for accelerating smart meter deployment, which improves billing accuracy, curbs theft, and reduces losses. This increased capital availability can also support discoms in managing change, building capacity, and investing in data analytics platforms. Despite previous efforts, the target for reducing aggregate technical & commercial (AT&C) losses by 2024-25 was not fully met, though losses did decrease.
