Power Distribution Scheme in India : 3.03 lakh crores approves

Power Distribution Scheme in India : Government approves Rs. 3.03 lakh crores reform based power

Power Distribution Scheme in India
Power Distribution Scheme in India
Two minute reads :
The union government has approved it’s five-year-long power distribution scheme of amount Rs. 3.03 lakh crores.
As per scheme, the funds from the scheme will be given to the power distribution companies for strengthening their systems.

Key points :

  • Finance minister Nirmala Sitharaman on Monday said that the Centre‚Äôs share towards the discom reform scheme will be Rs. 97,631 crore.
  • Reducing the aggregate technical and commercial (AT&C) loss to 12% in the next five years. Currently, the losses are around 21%.
  • Under the scheme, works of separation of 10,000 agriculture feeders will be taken up through an outlay of almost Rs. 20,000 crores.
  • The funds will be released to discoms subject to them meeting reform-related milestones, with state-run Power Finance Corporation (PFC) and Rural Electrification Corporation (REC) nominated as nodal agencies for implementation of the scheme.

Objectives :

  • The Scheme seeks to improve the operational efficiencies and financial sustainability of all DISCOMs/ Power Departments for strengthening of supply infrastructure.
  • The ambitious scheme aims to bring down India’s average aggregate technical and commercial loss from the present level of 21.4% to 12-15%.
  • It gradually narrow the deficit between the cost of electricity and the price at which it is supplied to ‘zero’ by 2024-25.
  • Its major focus will be on improving the electricity supply for the farmers and providing daytime electricity to them through the solarization of the agricultural feeders.
  • There will be a difference between this scheme and the earlier scheme, as this fund allocation will be conditional.
Also read : Goods and service tax system : key points
Power Distribution Scheme in India
Power Distribution Scheme in India

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