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ARTICLE · 10 SEPTEMBER 2021

An Analysis Of The Revamped Distribution Sector Scheme

On July 20, 2021, the Ministry of Power (MoP) approved a reforms-based and results-linked Revamped Distribution Sector Scheme (the Scheme) to improve the quality and reliability of supply...

IndiaEnergy and Natural Resources

On July 20, 2021, the Ministry of Power (MoP) approved a reforms-based and results-linked Revamped Distribution Sector Scheme (the Scheme) to improve the quality and reliability of supply of power to consumers. The Scheme is earmarked to have a total outlay of INR 3,03,758 crore, with the government pledging a budgetary support of INR 97,631 crore and aims to enhance the operational efficiency and financial health of all government owned Power Distribution Companies (DISCOMs) by FY 2025-26. REC Ltd and Power Finance Corp Ltd would serve as the Nodal Agencies for the implementation and operationalization of the Scheme.

Background

The Indian power sector has undergone an evolution since the time of independence when the country's installed capacity was only 1.3 GW1. Back then, access to electricity was only confined to large metropolitan and industrial areas. However, through the concerted efforts of the government in association with private players, the sector

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