Cabinet approves Revamped Distribution Sector Scheme

The union cabinet has approved the reforms-based and results-linked Revamped Distribution Sector Scheme, with an outlay of Rs 3,037.58 billion and an estimated gross budgetary support (GBS) of Rs 976.31 billion from the central government. The scheme seeks to improve the operational efficiencies and financial sustainability of all discoms by providing conditional financial assistance to them for strengthening of the supply infrastructure. The scheme will be available till 2025-26. REC Limited and the Power Finance Corporation have been nominated as nodal agencies for facilitating the implementation of the scheme. It has been proposed that the ongoing approved projects under existing schemes be subsumed into this scheme, and the savings on their GBS (around Rs 170 billion) be made part of the total outlay of the new scheme till March 31, 2022.