IAS Gyan

Daily News Analysis

REVAMPED DISTRIBUTION SECTOR SCHEME

30th July, 2022 Economy

Disclaimer: Copyright infringement not intended.

Context

  • Prime Minister will launch the Ministry of Power’s flagship Revamped Distribution Sector Scheme.
  • The scheme will be launched by PM Modi during a programme marking the culmination of ‘Ujjwal Bharat Ujjwal Bhavishya – Power @2047’ on 30 July.

Details

  • Revamped Distribution Sector Scheme, is aimed at improving the operational efficiencies and financial sustainability of the DISCOMs and Power Departments.
  • With an outlay of over Rs. 3 lakh crore over a period of five years from FY 2021-22 to FY 2025-26, the scheme aims to -
  1. Provide financial assistance to discoms for modernization and strengthening of distribution infrastructure,
  2. Focussing on improvement of the reliability and quality of supply to end consumers.
  3. Reduce the AT&C (Aggregate Technical and Commercial) losses to pan-India levels of 12-15%
  4. Bring ACS-ARR (Average Cost of Supply - Average Revenue Realized) gap to zero by 2024-25 by improving the operational efficiencies and financial sustainability of all state-sector DISCOMs and Power Departments.
  5. Improve reliability and quality of supply to the end consumers.

 

AT&C (Aggregate Technical and Commercial) losses

It is combination of energy loss (Technical loss + Theft + inefficiency in billing)& commercial loss (Default in payment + inefficiency in collection).

ACS-ARR

The term ACS means average cost of supply per unit of power and ARR means average revenue realized. The Government has taken various steps to minimize the difference between ACS – ARR. The gap between ACS – ARR should be as minimum as possible.

 

Must Read:

STATE OF DICSCOMS IN INDIA: https://iasgyan.in/daily-current-affairs/state-of-discoms-in-india

 

‘Ujjwal Bharat Ujjwal Bhavishya – Power @2047’

‘Ujjwal Bharat Ujjwal Bhavishya – Power @2047’event is taking place from July 25-30 as part of ongoing ‘Azadi Ka Amrit Mahotsav’ to the transformation in the power sector achieved in the last eight years. The six-day event, organised across the country, is aimed at empowering citizens by improving their awareness and participation in various power related initiatives, schemes and programmes of government.

Note: The prime minister will lay the foundation stone of 735 MW Nokh Solar Project in Rajasthan, Green Hydrogen Mobility Project in Leh and Kawas Green Hydrogen Blending with Natural Gas project in Gujarat.

 

https://www.pib.gov.in/PressReleasePage.aspx?PRID=1846120

X