What is RDSS and its key insights ?

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RDSS stands for Revamped Distribution Sector Scheme. It is an initiative by the Government of India, launched in 2021 under the Ministry of Power, aimed at improving the operational efficiency and financial sustainability of power distribution companies (DISCOMs).

🔍 Key Objectives of RDSS:

  1. Reduce AT&C Losses (Aggregate Technical and Commercial Losses) to 12–15%.

  2. Bring ACS-ARR Gap (Average Cost of Supply – Average Revenue Realized) to zero.

  3. Improve power reliability and quality for consumers.

  4. Promote smart metering and digital infrastructure in the power sector.

🔧 Main Components:

  1. Infrastructure Upgrades:

    • Upgrading substations, feeders, and transformers.

    • Implementation of Supervisory Control and Data Acquisition (SCADA) systems.

    • Installation of underground cables in urban areas.

  2. Smart Metering:

    • Prepaid smart meters for consumers, feeders, and transformers.

    • Helps reduce human error, theft, and billing inefficiencies.

  3. IT Enablement & Digitization:

    • Consumer services, billing, and complaint redressal through digital platforms.

    • Energy accounting and audit systems.

💰 Funding Pattern:

  • The central government provides a grant of up to 60% of the project cost (for most states).

  • Special category states (like NE states, UTs, Himalayan states) get up to 90% grant.

🧠 Why It Matters:

Power DISCOMs in India have been financially stressed for years. RDSS is a strategic effort to ensure:

  • Financial turnaround of DISCOMs.

  • Reliable 24x7 power supply.

  • Consumer empowerment through better service and transparency.


key statistics and progress of the Revamped Distribution Sector Scheme (RDSS) from its launch on June 30, 2021, up to June 2025:

📊 Overview & Financials

🧾 Sanctions & DPRs

⚡ Loss Reduction (Infrastructure Upgrades)

  • LT lines: ~1.03 million circuit‑km sanctioned; 88% awarded; 37.6% installed

  • HT lines: ~852,000 circuit‑km sanctioned; 71.5% awarded; 22.2% installed

  • Distribution Transformers (DTs): ~576,000 units sanctioned; 85% awarded; 18.4% installed

  • Overall physical progress in loss-reduction: 28.8%; financial: 24.8% Power Line Magazine+1Smart Utilities+1

  • Pan‑India AT&C losses reduced from 16.23% in 2022–23 to 16.87% in FY24; estimated to reach RS 16.87% by end FY24 with government‑run DISCOMs at ~17.17%, and private DISCOMs around 12.12% Mercomindia.com+1TND India+1

  • ACS‑ARR gap decreased from ₹0.69/kWh in 2020–21 to ₹0.45/kWh in 2022–23, then hovered at ~₹0.55/kWh in 2023 due to higher power procurement costs Power Line Magazine+6Smart Utilities+6Smart Utilities+6

  • DISCOM accumulated losses rose from ₹5.45 trillion (FY21) to ₹6.92 trillion (FY24) TND India+4Mercomindia.com+4mint+4

📶 Smart Metering

  • Sanctioned: 198–200 million consumer smart meters, 5.2–5.25 million DT meters, and 190,000–195,000 feeder meters (₹1.3 trillion) Renewable Watch+7Power Line Magazine+7Smart Utilities+7

  • Awarded: ~115 million consumer meters (58%), 4.8–4.5 million DT meters (~90%), 172,000 feeder meters (~88%) Power Line Magazine

  • Installed (reportedly active communication): ~20 million consumer meters, 620,800 DT meters, 116,500 feeder meters

  • Physical installation progress: ~10.2%; financial disbursement: only 2.05% of smart‑meter funds released Power Line Magazine

✅ Other Highlights & Emerging Trends

  • Budget utilization: As of February 2025, ₹25,664 crore used out of ₹30,065 crore allocated for FY22–FY25 (~85%) mint+1Mercomindia.com+1

  • House electrification: Of ~9.98 lakh households sanctioned, 1.80 lakh electrified by Feb 9, 2025 (~18%) mintMercomindia.com

  • Disconnection surcharge reform helped reduce overdue payments from ₹1,295.8 billion (Sept 2022) to ₹372.8 billion (Feb 2024) Renewable Watch

📅 Timeline Summary

Year / PeriodKey Metrics & Achievements
Launch – June 2021                    Scheme officially launched on June 30, 2021
By Dec 2023        DPRs worth ₹2.52 trillion approved; ~20‑22 crore smart meters sanctioned
June 2025Sanctioned cost ₹2.81 trillion; 58% consumer meters awarded; loss-reduction works ~29% physical progress
FY24 (by Mar 2024)AT&C losses ~16.9%, ACS‑ARR gap ~₹0.55/kWh; DISCOM losses ₹6.92 trillion

🔍 Key Takeaways

  • Strong sanctioning activity: ₹1.3 trillion in both loss-reduction and smart‑metering components.

  • Slow rollout: Only ~10–15% installation achieved so far, especially for smart meters.

  • Financial impact mixed: ACS‑ARR gap has improved but remains non-zero; DISCOM losses still elevated.

  • Implementation speed up needed: Physical milestones behind schedule, prompting a possible 2‑year extension to FY 2028 Smart Utilities+4TND India+4TND India+4TND India+9Mercomindia.com+9TND India+9


Reference: https://rdss.powermin.gov.in/ 

Location: India

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