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Revamped Distribution Sector Scheme for better operations & financial sustainability of all DISCOMs

Topics Covered: Infrastructure- Energy.

Revamped Distribution Sector Scheme for better operations & financial sustainability of all DISCOMs:


The scheme was recently approved by the Union Cabinet.


Highlights of the scheme:

  1. It is a reforms-based and results-linked scheme.
  2. It seeks to improve the operational efficiencies and financial sustainability of all DISCOMs/Power Departments excluding Private Sector DISCOMs.
  3. The scheme envisages the provision of conditional financial assistance to DISCOMs for strengthening supply infrastructure.
  4. The assistance will be based on meeting pre-qualifying criteria as well as upon the achievement of basic minimum benchmarks by the DISCOM.
  5. The scheme involves a compulsory smart metering ecosystem across the distribution sector—starting from electricity feeders to the consumer level, including in about 250 million households.
  6. Scheme also focuses on funding for feeder segregation for unsegregated feeders.
  7. The Scheme has a major focus on improving electricity supply for the farmers and for providing daytime electricity to them through solarization of agricultural feeders.




Objectives of the scheme:

  1. Reduction of average aggregate technical and commercial loss to pan-India levels of 12-15% by 2024-25.
  2. Narrow the deficit between the cost of electricity and the price at which it is supplied to zero by 2024-25.
  3. Developing institutional capabilities for modern DISCOMs.
  4. Improvement in the quality, reliability, and affordability of power supply to consumers through a financially sustainable and operationally efficient distribution sector.



  1. Do you know what Energy Mix is? Read Here
  2. Do you know what net-zero is? Read Here



Prelims Link:

  1. About REC.
  2. About DDGJY.
  3. About IPDS.
  4. Features of Revamped Distribution Sector Scheme.

Mains Link:

Write a note on power sector reforms in India.

Sources: PIB.