RDSS Scheme – 250 Million Smart Meters Rollout by 2025

Context:

• The Centre has set an ambitious target of installing 250 million smart meters nationwide by 2025. Currently, 7 million smart-meters are installed across the country. 

A Closer Look at the RDSS Scheme – Latest Update

• After experiencing sluggish growth, the smart meter network is set to grow significantly this year, with around 150 million meters in various stages of the bidding process.
• The Revamped Distribution Sector Scheme (RDSS) allocates Rs 10,000 crore for smart prepaid metering infrastructure across the country.  
• Government estimates indicate the deployment of 250 million smart-meters for domestic consumers under this. 

What is the RDSS Scheme? 

• It aims to improve the operational efficiencies and financial sustainability of state-owned distribution companies (discoms)/power departments by providing conditional financial assistance. 
• RDSS envisions smart metering in operational expenditure mode and provides financial support to discoms opting for prepaid smart-metering.  
• The scheme requires the projects to be executed on Totex mode which means execution through a combination of Capex and Opex mode.
  • Capital expenditure is a company’s major, long-term expense while operating expenses is its day-to-day expense.
• Nodal Agencies: Rural Electrification Corporation and Power Finance Corporation
• Implementation cost: The scheme’s cost is borne by the Centre and state governments in a 3:2 ratio.

Objectives of the RDSS Scheme

• Reduction of Aggregate Technical and commercial (AT&C) losses to pan-India levels of 12-15% by 2024-25.
• Reduction of Average Cost of Supply (ACS)-Average Revenue Realised (ARR) gap to zero by 2024-25.
• Improve the quality, reliability and affordability of power supply to consumers through a financially sustainable and operationally efficient distribution sector.

Components of the RDSS Scheme:

• Part A: Financial support for Prepaid Smart Metering & System Metering and up-gradation of the Distribution Infrastructure.
• Part B: Training & Capacity Building and other Enabling & Supporting 

Eligibility Criteria for RDSS:

• All State-owned Distribution companies and State /UT Power Departments (referred to as DISCOMS collectively) excluding private Sector power companies will be eligible for financial assistance under the revamped scheme. 
• The scheme would be optional to DISCOMs and will be implemented in urban and rural areas of all States/UTs except private DISCOMS.

News Source: Business Standard

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