Objective behind Results-linked Revamped Distribution Sector Scheme

New Delhi: The Ministry of Power, Government of India, had launched the Reforms-based and Results-linked, Revamped Distribution Sector Scheme (RDSS), with the objective to improve the operational efficiencies and financial sustainability of State-owned DISCOMs/ Power Departments by providing financial assistance to DISCOMs for modernization and strengthening of distribution infrastructure, aiming at the improvement of the reliability and quality of supply to end consumers.

The objective of improving the quality and reliability of power supply to consumers through a financially sustainable and operationally efficient distribution Sector said Shri R.K Singh Union Minister for Power and MNRE in Lok Sabha today.

The scheme has an outlay of Rs.3,03,758 crore and an estimated GBS from the Central Government of Rs. 97,631 crore. The financial assistance under the scheme is tied to the initiation of reform measures and achievement of results thereof as per mutually agreed action plans,

The Government of India have made several interventions to improve financial and operational efficiencies of DISCOMs linked to reform measures including the Liquidity Infusion Scheme (LIS); Additional Borrowing of 0.5% of GSDP to States linked to power sector reforms; introducing of additional prudential norms for lending by Power Finance Corporation (PFC) Limited and REC Limited based on the performance of utilities.
 

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