Central government mulls 2.86 trillion distribution scheme

The central government is reportedly planning to launch a Rs 2.86 trillion scheme reportedly named the Atal Distribution System Improvement Yojana (ADITYA) in the Union Budget 2020. Under the proposed scheme, the MoP would provide a grant of over Rs 1,100 billion to state discoms with a mandate to either privatise operations or appoint distribution franchisees and invest in infrastructure upgradation. The scheme would entail implementation of smart metering, institutional reforms by inefficient discoms to avail of investment support from the MoP, and focus on the development of human resources and implementation of future technologies. The proposed scheme would focus on reducing electricity losses to less than 10 per cent in urban areas and 15 per cent in rural areas, and also on bridging the gap between the average cost of supply and the average revenue realised from the sale of electricity. The scheme would be implemented in three phases up to March 2024.

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