Govt may raise allocation for power distribution reforms

Revamped Distribution Sector Scheme is likely to get ₹18,000 crore in the FY27 budget

- Rituraj Baruah

For the current financial year ending 31 March, the scheme was allocated around ₹16,000 crore.

(MINT)

The government may increase the annual allocation for the Revamped Distribution Sector Scheme (RDSS) to ₹18,000 crore in the FY27 budget, scheduled to be presented on 1 February, according to two people aware of the matter.

The scheme, launched in 2021, aims to transform the power distribution sector in the country by making it more efficient and financially sustainable.

“This year, the power ministry has proposed an allocation of about ₹18,000 crore for RDSS, which is under consideration. Smart meter installation is gaining pace and about 1.5 lakh meters are installed monthly. With this momentum in place, funds need to increase,” said the first of the two persons cited earlier, both of whom spoke on the condition of anonymity.