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Introducing RDSS: Transforming India’s Distribution Sector
You will be excited to know that the Government of India has taken a significant stride towards revolutionizing the nation’s power distribution infrastructure with the launch of the RDSS scheme. If you are wondering about the RDSS scheme full form it is- Revamped Distribution Sector Scheme. With an impressive outlay of Rs. 3,03,758 crore and estimated support from the Central Government amounting to Rs. 97,631 crore over five years (FY 2021-22 to FY 2025-26), RDSS is poised to usher in a new era of efficiency and reliability in the distribution of electricity across the country.
You must understand the Aim and Objectives of this Scheme
You might ask what is the RDSS scheme? At its core, RDSS aims to tackle two key challenges plaguing India’s power distribution landscape:
- Reducing the Aggregate Technical and Commercial (AT&C) losses to the national levels of 12-15%.
- Bridging the gap between the Average Cost of Supply (ACS) and the Average Revenue Realized (ARR) to zero by the fiscal year 2024-25.
Let us Delve into the Core Components of RDSS
RDSS India comprises two primary components: Part ‘A’: You will receive financial support for Prepaid Smart Metering & System Metering and Distribution Infrastructure Upgradation. Part ‘B’: Government will provide citizens with training & capacity building, along with other enabling & supporting activities. So to simplify it a bit more, you can say that under Part ‘A’, financial assistance is extended to Distribution Companies (DISCOMs). With this, you can enjoy Prepaid Smart Consumer Metering & System Metering and it will enhance the distribution infrastructure. The allocation of funds is contingent upon DISCOMs meeting predetermined criteria and achieving essential benchmarks in reforms.
Learn about the Integration and Continuity of RDSS
Revamped distribution sector scheme (RDSS) consolidates existing schemes such as the Integrated Power Development Scheme (IPDS), Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY), and Prime Minister’s Development Package (PMDP)-2015 for the erstwhile State of Jammu & Kashmir. The existing projects will continue to receive funding until March 2022 under RDSS, but no new projects will be sanctioned under these schemes. However, specific projects in Ayodhya, Uttar Pradesh under IPDS and those sanctioned under PMDP 2015 will continue to receive support until March 2023.
The Scheme is Constantly Picking Pace in the Progress and Implementation
You might know, that RDSS has made significant strides towards its objectives since its inception. It is good news for us, that Sixteen meetings of the Monitoring Committee have been convened. They did this to culminate the approval of Action Plans and Detailed Project Reports (DPRs) for 46 DISCOMs across 28 States and Union Territories. Notably, approximately 20.46 crores pre-paid smart consumer meters, 54 lakh smart Distribution Transformers (DT) meters, and 1.98 lakh smart feeder meters have been sanctioned under the scheme.
Take a Look at the Overview of RDSS
From the information made public we understand that the Central Government has greenlit a transformative initiative. The RDSS project full form i.e. Revamped Distribution Sector Scheme, brings an impressive budget of Rs. 3,03,758 crore spanning five years from FY 2021-22 to FY 2025-26. This scheme is strategically designed to elevate the quality, reliability, and affordability of power supply for us. Further, we can enjoy financial sustainability and operational efficiency in the distribution sector.
Putting a Thought on Objectives and Targets of the Government
You could say that the primary objective of the scheme is ambitious, but we think it is attainable. Achieving this hinges on enhancing operational efficiencies and financial sustainability across all DISCOMs/Power Departments, except those in the private sector. If the Aggregate Technical & Commercial (AT&C) losses reduce to pan-India levels of 12-15% we can eradicate the gap between Average Cost of Supply (ACS) and Average Revenue Realized (ARR) by 2024-25.
Wondering about the Financial Assistance and Criteria of this Scheme
Under the scheme, DISCOMs/Power Departments can access funds for pre-paid smart metering, system metering, and distribution infrastructure upgrades. This means the RDSS project aims at loss reduction and modernization. Not sure how the financial help for distributing infrastructure works? It is contingent upon meeting pre-qualifying criteria and achieving basic minimum benchmarks, evaluated through action plans.
Understanding the Criteria for RDSS and How the Performance is Evaluated
If you read the RDSS scheme in hindi you will find that annual performance appraisals are integral to the scheme, with DISCOMs evaluated against predefined performance trajectories covering various parameters such as AT&C losses, ACS-ARR gaps, infrastructure upgrades, consumer services, and corporate governance. So, you should know that DISCOMs must achieve a minimum score of 60% and meet specific parameters to be eligible for funding under the scheme each year.
Empowering Consumers and Technological Integration is Embebbe in this Scheme
A key aspect of the RDSS project is consumer empowerment. You will be facilitated through prepaid smart metering implemented in a public-private partnership (PPP) model. Leveraging Artificial Intelligence to analyze data generated through IT/OT devices will make things easier. By using the system meters and prepaid smart meters it can be regularly monitored. This will enable DISCOMs to make informed decisions on loss reduction, demand forecasting, time-of-day tariffs, renewable energy integration, and predictive analysis.
The Government’s Focus on Agricultural Sector and Special Category States
The RDSS full form which is the Revamped Distribution Sector Scheme places a significant emphasis on improving the electricity supply for farmers. This will be done by separating agriculture feeders and providing daytime electricity through convergence with the Pradhan Mantri Kisan Urja Suraksha Evem Utthan Mahabhiyan (PM-KUSUM) Scheme for solarization of agriculture feeders. Additionally, special attention will be given to North-Eastern States, Sikkim, Jammu & Kashmir, Ladakh, Himachal Pradesh, Uttarakhand, Andaman & Nicobar Islands, and Lakshadweep, which are designated as Special Category States.
Let us find out the Guidelines for Operation and the Monitoring Process
The scheme’s implementation is guided by operational guidelines issued on 27th July 2021, supported by a robust monitoring mechanism facilitated by the constitution of a Monitoring Committee on 20th July 2021/3rd August 2021, ensuring accountability and progress tracking. In essence, the RDSS meaning Revamped Distribution Sector Scheme embodies India’s commitment to modernize its power distribution infrastructure. It empowers consumers and drives sustainable development across the nation. Conclusion The unveiling of RDSS marks a pivotal moment in India’s journey towards a robust and efficient power distribution network. Wouldn’t you agree that with its comprehensive approach, the scheme is poised to transform the sector? We can also affirm that it will drive economic growth, and enhance the quality of life for millions of us. Under the visionary leadership of Shri R.K Singh, Union Minister for Power and MNRE, RDSS full form in electrical i.e. Revamped Distribution Sector Scheme is set to redefine the future of power distribution in India.
