CCEA nod for Rs 3.03-lakh cr scheme for power discoms

CCEA approves Rs 3.03-lakh crore scheme for power discoms

Funds will be given to electricity distribution companies to improve their operational efficiencies and financial sustainability

Total allocation will be Rs 3,03,058 crore, including a central government share of Rs 97,631 crore. Credit: AFP Photo

Aimed at providing uninterrupted electricity to consumers, the Centre on Wednesday approved a five-year-long reform-based result-linked power distribution scheme worth Rs 3.03 lakh crore.

The Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi on Wednesday approved the Reform-Based Result-Linked Power Distribution Scheme which was announced in the Budget earlier this year.

Briefing after the CCEA meet, Power and New & Renewable Energy Minister R K Singh said that the Cabinet has approved the new scheme worth Rs 3.03 lakh crore, including Rs 97,000 crore central outlay."

Funds will be given to electricity distribution companies to improve their operational efficiencies and financial sustainability.

The revamped reforms-based result-linked power distribution scheme will provide financial assistance to discoms for infrastructure creation, upgradation of system, capacity building and process improvement.

The scheme has a major focus on improving electricity supply for the farmers and for providing daytime electricity to them through solarization of agricultural feeders.

For availing this scheme, the states will have to meet criteria like the publication of audited financial reports, upfront liquidation of state government's dues/subsidy to discoms and non-creation of additional regulatory assets.

The scheme proposes the installation of 25 crore smart meters, 10,000 feeders, four lakh kilometres of low-tension overhead lines planned under the ongoing works under central government schemes.

The central schemes Integrated Power Development Scheme, Deen Dayal Upadhyaya Gram Jyoti Yojana, and Pradhan Mantri Sahaj Bijli Har Ghar Yojana (Saubhagya) will be merged.

Total allocation will be Rs 3,03,058 crore, including a central government share of Rs 97,631 crore.

The assistance will be based on meeting pre-qualifying criteria as well as upon achievement of basic minimum benchmarks by discoms, evaluated on the basis of an agreed evaluation framework tied to financial improvements. Implementation of the scheme would be based on the action plan worked out for each state rather than a “one-size-fits-all” approach.

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