₹3 trillion power distribution scheme may get extension

The govt seeks to connect more households, especially in rural areas, to the electricity grid

- Rituraj Baruah

The government may extend a scheme aimed at strengthening India’s power distribution infrastructure beyond its intended five-year duration as it seeks to connect more households, especially in rural areas, to the electricity grid.

The Revamped Distribution Sector Scheme (RDSS), which has an outlay of ₹3 trillion for financial years 2021-22 to 2025-26, may now be extended beyond the five-year period to support increasing demand for electrification, two people aware of the matter said.

“RDSS may continue for another five years. It will move on into the next finance commission period," one of them said. Recommendations of the 16th Finance Commission will be effective from 1 April, 2026.

The government had introduced the scheme to help power distribution companies improve their operational efficiency and financial sustainability as it pushed for universal household electrification.

Two earlier programmes—Pradhan Mantri Sahaj Bijli Har Ghar Yojana (Saubhagya) and Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY)—had ended in 2022.