Govt plans second phase for discom-financing scheme
Financial Express Mumbai|January 01, 2024
Five-year scheme may have outlay similar to ₹3-trillion first phase 
ARUNIMA BHARADWAJ
Govt plans second phase for discom-financing scheme

THE CENTRE IS planning to launch another scheme to enable public sector power distribution utilities (discoms) to cut technical losses via "transition-financing" of the required capital expenditure.

The new scheme would follow the expiry of the ₹3-trillion Revamped Distribution Sector Scheme (RDSS) launched in FY22 for five years through FY26, a senior power ministry official said. The proposed RDSS-II would have a similar aggregate outlay, and run for as many years as the current one, he added.

"To be able to distribute the load of 780 gigawatt(GW), which is projected for 2030, a lot of additional work has to be done," the official said.

The next phase of RDSS might also facilitate sanctioning of funds for new projects, aimed at improving operational efficiency of the country's electricity distribution infrastructure.

"Planning has started for the second phase of RDSS, which is likely to be launched after FY26... data is being collected on how much additional work the distribution sector requires to be strengthened to carry the load projected for 2030," the official said.

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