Govt issues detailed guidelines to revamp discoms
POWER & RENEWABLE ENERGY

Govt issues detailed guidelines to revamp discoms

To reform the result-linked power distribution program for the upcoming five years, the Ministry of Power (MoP) has announced detailed guidelines.

The program targets to enhance the quality and the security of power supply to consumers by an operationally effective distribution area and which is sustainable financially.

The plan is to decrease the aggregate technical and commercial (AT&C) losses over India to 12-15% and reduce the gap between the aggregate revenue and the average cost of supply by 2024-25.

As per the MoP, the cost for the program is Rs 3.03 trillion, including the budgetary provision of Rs 976.31 billion from the Indian government.

The nodal companies responsible for executing the program over India would be Power Finance Corporation Limited and REC Limited.

States and their distribution companies (discoms) need to sign a tripartite agreement with the central government to avail of the benefits under the program.

An inter-ministerial monitoring committee would be formed under the MOPs Secretary chairmanship. The monitoring committee would design and allow every action plan and detailed project report (DPR) of discoms/states and observe the program's execution.

Finance Minister, Nirmala Sitharaman, announced the Covid-19 economic relief package and revealed different sops for discoms, including Rs 3.03 trillion, the cost for reform-based result-linked power distribution program.

The program will consist of the Deendayal Upadhyaya Gram Jyoti Yojana (DDUGJY), Integrated Power Development Scheme (IPDS), and the Prime Minister’s Development Package (PMDP)- 2015 for Jammu & Kashmir, and the profits of the gross budgetary support of nearly Rs 170 billion.

The range of the program is split into two parts. Part-A consists of financial aid for the up-gradation of the infrastructure, metering system, and prepaid metering.

Part-B comprises training capacity building and additional supporting and enabling activities.

Image Source


Also read: Ministry of Power announces ninth yearly ratings for state discoms

To reform the result-linked power distribution program for the upcoming five years, the Ministry of Power (MoP) has announced detailed guidelines. The program targets to enhance the quality and the security of power supply to consumers by an operationally effective distribution area and which is sustainable financially. The plan is to decrease the aggregate technical and commercial (AT&C) losses over India to 12-15% and reduce the gap between the aggregate revenue and the average cost of supply by 2024-25. As per the MoP, the cost for the program is Rs 3.03 trillion, including the budgetary provision of Rs 976.31 billion from the Indian government. The nodal companies responsible for executing the program over India would be Power Finance Corporation Limited and REC Limited. States and their distribution companies (discoms) need to sign a tripartite agreement with the central government to avail of the benefits under the program. An inter-ministerial monitoring committee would be formed under the MOPs Secretary chairmanship. The monitoring committee would design and allow every action plan and detailed project report (DPR) of discoms/states and observe the program's execution. Finance Minister, Nirmala Sitharaman, announced the Covid-19 economic relief package and revealed different sops for discoms, including Rs 3.03 trillion, the cost for reform-based result-linked power distribution program. The program will consist of the Deendayal Upadhyaya Gram Jyoti Yojana (DDUGJY), Integrated Power Development Scheme (IPDS), and the Prime Minister’s Development Package (PMDP)- 2015 for Jammu & Kashmir, and the profits of the gross budgetary support of nearly Rs 170 billion. The range of the program is split into two parts. Part-A consists of financial aid for the up-gradation of the infrastructure, metering system, and prepaid metering. Part-B comprises training capacity building and additional supporting and enabling activities. Image Source Also read: Ministry of Power announces ninth yearly ratings for state discoms

Next Story
Resources

Madhya Pradesh Champions Inclusive Tourism at Heritage Sites

On the occasion of World Heritage Day, Madhya Pradesh is taking a significant step toward inclusive tourism by making its historical sites accessible to all — especially persons with disabilities. The state is rolling out its ‘Accessibility Infrastructure and Development’ project at Maheshwar, Mandu, Dhar, and Orchha, aiming to create a more welcoming experience at these iconic cultural destinations.The initiative, under the leadership of Chief Minister Dr Mohan Yadav and Tourism Minister Shri Dharmendra Bhav Singh Lodhi, includes infrastructure upgrades such as ramps, Braille signage, w..

Next Story
Resources

Runwal Realty Onboards Sonam Kapoor as Brand Ambassador

Real estate major Runwal has unveiled a refreshed identity as Runwal Realty, signalling a renewed commitment to crafting spaces that stand the test of time. With this refresh, the brand unveils its new philosophy: “Building for Generations to Come” and welcomes Bollywood star and global fashion icon Sonam Kapoor as its brand ambassador. This evolved identity reflects Runwal Realty’s commitment to creating not just homes, but heirlooms—crafted through visionary design, meticulous planning, global design expertise and an unwavering focus on quality. With the customer at its core, each de..

Next Story
Infrastructure Urban

Emerging Trends in Infrastructure and Transport 2025: KPMG

KPMG’s latest report, The Great Reset: Emerging Trends in Infrastructure and Transport 2025 edition, sheds light on the profound changes transforming the global infrastructure landscape. As industries adapt to the challenges posed by climate change, economic pressures, and technological advancements, the report identifies key trends and provides actionable insights for leaders in infrastructure and transport sectors. “In today’s interconnected world, the lack of standardized supply chain practices is not just an operational challenge—it’s an environmental and economic one. We’..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?