Discoms to get ₹3.03 lakh crore under revamped distribution scheme

The Union Power Ministry has directed all Discoms to send their detailed project reportsDPRs under the revamped distribution scheme before October 31. Under the scheme, ₹3.03 lakh crore will be distributed to Discoms to help shore up their finances.

Revamped distribution scheme is devised by the Union Power Ministry to help all Discoms to improve their financial situation. The scheme aims to reduce the AT&C losses to pan-India levels of 12-15 percent, and ACS-ARR gap to zero by 2024-25, by improving the operational efficiencies and financial sustainability of all Discoms/ power departments, excluding private sector Discoms.

Discoms would be able to access funds under the scheme for pre-paid smart metering, system metering and distribution infrastructure works, for loss reduction and modernisation.

Union Power Minister R.K. Singh has exuded confidence that most states would be able to submit their detailed project report (DPR) for enrolling into the ₹3.03-lakh crore revamped electricity distribution scheme by October 31.

Earlier, the Power Ministry had extended the deadline for submitting of the DPRs under the scheme by two months, till December 31, at the request of states reeling under the impact of the pandemic.

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Singh had a detailed discussion on the scheme with his counterparts in the states in region-wise batches on September 21 and 23, on the revamped electricity distribution scheme.

“All states want to enrol under the scheme. Most of the states would be able to submit their DPR by October 31. They said that they will adhere to the earlier deadline,” said a senior TANGEDCO official.

The power distribution companies are allowed the flexibility to draw up modernisation plans keeping in view their own specific requirements.

“The scheme seeks to improve the operational efficiencies and financial sustainability of Discoms by providing financial assistance, strengthening of supply infrastructure and reduction of AT&C losses by 2024-25,” said the official.

The eligible Discoms will be provided financial assistance, but they will have to meet pre-qualifying criteria and achieve 60 percent marks on the result evaluation matrix.

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A Discom which runs on losses, will not be able to access funds under this scheme unless there is a plan to reduce losses, and it lists out steps it will take to reduce losses and timelines thereof and get their state government’s approval on it. “The Discom can formulate its own action plan for reforms,” said the official.

The Centre has laid out conditions for the Discoms to join the scheme. Discoms must publish quarterly un-audited accounts within 60 days of the end of each quarter, audited annual accounts by December of next financial year and after two years, at the end of every September of the next financial year.