| Work Detail |
The Government of India launched the Pradhan Mantri Sahaj Bijli Har Ghar Yojana (SAUBHAGYA) in October 2017, aiming for universal household electrification. The scheme targeted all un-electrified households in rural areas and poor households in urban areas. By March 31, 2022, approximately 2.86 crore households across India were electrified under SAUBHAGYA. In Maharashtra alone, 5,89,242 households received connections, with the majority electrified through grid connections in rural and urban areas, while 30,538 rural households were connected through off-grid solutions. The scheme officially concluded on March 31, 2022.
Following SAUBHAGYA’s completion, the government initiated the Revamped Distribution Sector Scheme (RDSS) in July 2021. RDSS focuses on improving the financial and operational efficiency of distribution utilities, aiming to reduce Aggregate Technical and Commercial (AT&C) losses to 12-15% and eliminate the gap between the average cost of supply and average revenue by 2024-25. Under this scheme, electrification for 9,036 households in Maharashtra has been sanctioned through initiatives like PM-JANMAN and DA-JGUA.
The RDSS has an outlay of ?3.03 lakh crore, including a budgetary support of ?97,631 crore. Spanning five years from 2021 to 2026, it involves participation from 48 distribution companies (DISCOMs) across 30 states and union territories. The scheme emphasizes improving cash flows and financial stability by addressing AT&C losses and reducing the cost-revenue gap. Financial assistance under RDSS is linked to performance metrics such as timely publishing of accounts, payment of subsidies, prepaid metering in government establishments, and timely tariff adjustments.
Projects worth ?2.77 lakh crore have been sanctioned under RDSS for loss reduction and smart metering. Utilities submit Detailed Project Reports (DPRs) based on their specific needs, which are approved after state cabinet recommendations. Funding for loss reduction works can cover up to 60% of the project cost, increasing to 90% for special category states. Smart metering grants are also available, supporting the installation of meters at feeders, transformers, and consumer levels.
In addition to RDSS, the government has introduced reforms such as the Electricity (Late Payment Surcharge and Related Matters) Rules 2022 and adjustments to fuel and power purchase costs. States are also given additional borrowing space linked to power sector reforms. Over time, these measures have contributed to significant improvements in the power distribution sector.
As a result of these reforms, the national AT&C losses have decreased from 25.5% in 2013 to 15.37% in 2023. The cost-revenue gap also reduced from ?0.84 per unit in 2013 to ?0.45 per unit in 2023. Additionally, power supply hours have improved significantly. Rural areas now receive an average of 21.9 hours of electricity daily, up from 12.5 hours in 2014. In urban areas, supply has increased from 22.1 hours to 23.4 hours daily. These initiatives highlight the government’s commitment to strengthening India’s power distribution network and ensuring reliable electricity for all. |
