Meghalaya has received the sanction of Rs 1092.54 crore from the Central government for Revamped Distribution Sector Scheme.
The approval was given by the Monitoring Committee of the Power Ministry on July 14 following the detailed proposals sent by the State government.
Rs 307.82 crore was sanctioned under smart prepaid meters while Rs 784.72 crore was sanctioned under loss reduction programme.
The projects will ensure improvement of power quality and reliability in the State with the overall target to reduce Aggregate Technical and Commercial (AT&C) loss to 18 per cent in line with acceptable standards.
The power Ministry had launched the reforms-based and results-linked Revamped Distribution Sector Scheme (RDSS) with the objective to improve the operational efficiencies and financial sustainability of State owned power distribution companies (discoms) by providing financial assistance to them for modernisation and strengthening of distribution infrastructure, aiming at improvement of the reliability and quality of supply to end consumers.
Meghalaya and Assam have become the frontrunners in planning their operational and financial reforms as well as the underlying works to accomplish the same under Revamped Distribution Sector Scheme (Nodal Agency – REC). Accordingly, their state-level Distribution Reforms Committee (DRC) and state cabinets have approved the proposals, including Action Plan and detailed project report (DPR) for consideration under the scheme.
The Action Plans from the states include multiple reform measures aimed towards loss reduction, implementation of smart prepaid metering of majority of their consumer base, 100 per cent feeder level energy accounting by Financial Year 2023, reconductoring of old/frayed conductors, conversion to LT ABC, bifurcation of feeders, segregation of agriculture feeders, and upgradation of billing and other IT/OT systems, in addition to works towards improving quality and reliability of supply.
Under these plans, the two states have also committed to ensure financial viability of the discoms, such as liquidation of outstanding subsidy dues and government department dues, implementation of tariff reforms, measures to enhance consumer services etc. These proposals have been put forward to the Monitoring Committee set up by the Ministry of Power for approval.
Revamped Distribution Sector Scheme has an outlay of Rs 3,03,758 crore with an estimated budgetary support from Central government of Rs 97,631 crores, which would be available till Financial Year 2025-26.
The assistance is reforms linked and will be based on meeting pre-qualifying criteria as well as upon achievement of performance benchmarks by discoms evaluated based on an agreed and customised evaluation framework tied to financial and operational improvements. The unique feature of the scheme is that its implementation is based on the action plan worked out for each state to address State specific issues, rather than a “one-size-fits-all” approach.
The key interventions envisioned under this programme include providing support to discoms to undertake activities for ensuring 100 per cent system metering, implementing prepaid smart metering, energy accounting, and implementing infrastructure works for loss reduction as well as for modernisation and system augmentation aimed at improving the quality and reliability of power supply.
Along with their proposals, discoms will also need to submit an action plan for strengthening their distribution system and improving performance by way of various reform measures targeting improvement in operational efficiency, financial viability and quality and reliability of power supply.
