The Union Cabinet has approved a Reforms-based and Results-linked, Revamped Distribution Sector Scheme with an aim to improve the operational efficiencies and financial sustainability of discoms.
The scheme will have an outlay of Rs 3,037.58 billion with an estimated gross budgetary support (GBS) from central government of Rs 976.31 billion. The scheme seeks to improve the operational efficiencies and financial sustainability of all discoms by providing conditional financial assistance to discoms for strengthening of supply infrastructure. The assistance will be based on meeting pre-qualifying criteria as well as upon achievement of basic minimum benchmarks by the discom evaluated on the basis of agreed evaluation framework tied to financial improvements. The scheme would be available till the year 2025-26. REC and PFC have been nominated as nodal agencies for facilitating implementation of the Scheme. It is proposed that the currently ongoing approved projects under the schemes of Integrated Power Development Scheme, Deen Dayal Upadhyaya Gram Jyoti Yojana along with Prime Minister’s Development Package-2015 for the Union Territories of Jammu & Kashmir (J&K) and Ladakh would be subsumed in this scheme, and the savings of their GBS (around Rs 170 billion) would be part of the total outlay of the revamped distribution sector scheme under the existing terms and conditions till March 31, 2022.