CCEA approves Revamped Distribution Sector Scheme for power DISCOMs

The Cabinet Committee on Economic Affairs (CCEA) on Wednesday approved a five-year-long reform-based result-linked power distribution scheme worth Rs 3.03 lakh crore.

The Reform-Based Result-Linked Power Distribution Scheme was announced in Budget earlier this year.

Key Highlights

• The revamped reforms-based result-linked power distribution scheme will provide financial assistance to discoms for infrastructure creation, up-gradation of system, capacity building and process improvement.
• It provides state-specific intervention in place of ‘one size fits all’.
• For availing this scheme, the states will have to pre-qualify criteria like publication of audited financial reports, upfront liquidation of state government’s dues/subsidy to discoms and non-creation of additional regulatory assets.
• The scheme envisages 25 crore smart meters, 10,000 feeders, four lakh km 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.

SOURCE: Financial Express

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