Revamped Distribution Sector Scheme (RDSS)
Why in news?
The Revamped Distribution Sector Scheme (RDSS) has seen significant funding releases and state-level reviews in late 2025, with a focus on accelerating smart meter installations and infrastructure upgrades. Recent developments highlight Rs 37,000 crore disbursed by the Centre, representing 38% of sanctioned support, tied to DISCOM milestones.​
About
The Revamped Distribution Sector Scheme (RDSS) is a flagship initiative launched by the Ministry of Power, Government of India in July 2021, with a massive outlay of ₹3,03,758 crore (FY 2021–22 to FY 2025–26). Its core aim is to strengthen India’s electricity distribution sector by improving operational efficiency, reducing losses, and ensuring financial sustainability of DISCOMs (Distribution Companies).
Key Objectives of RDSS
- Reduce AT&C losses (Aggregate Technical & Commercial) to 12–15% by 2024–25.
- Eliminate ACS-ARR gap (Average Cost of Supply vs. Average Revenue Realized) by 2024–25, ensuring DISCOMs recover costs fully.
- Enhance reliability, affordability, and quality of power supply to consumers.
- Modernize distribution infrastructure with smart technologies.
Major Components
- Smart Metering Revolution
- Replacement of all conventional meters with prepaid smart meters.
- System metering at feeders and transformers for better monitoring.
- Distribution Infrastructure Works
- Loss reduction projects, strengthening of substations, and modernization of grids.
- Financial Support
- DISCOMs (excluding private ones) can access central funds for approved projects.
- Renewable Integration
- Rooftop solar and decentralized renewable energy projects are being expedited under RDSS.
Challenges & Risks
- Implementation Delays: Large-scale smart meter rollout faces logistical and vendor challenges.
- Financial Discipline: DISCOMs must adhere to reforms and performance benchmarks to access funds.
- Consumer Acceptance: Transition to prepaid smart meters requires awareness and trust-building.
- State-Level Variations: Success depends on cooperation between central and state agencies.
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