Uttar Pradesh Power Corporation Limited is working on a project to bring down line losses to 12-15 per cent by 2024-25 and strengthen the power distribution network across the state.

The UPPCL will implement the centrally-sponsored reforms-based and result-linked Revamped Distribution Sector Scheme (RDDS) to achieve the objective of cutting down the losses.

The RDSS project will be implemented in 29 packages and Rs 13,632 crore have been allotted to five subsidiary distribution companies of the UPPCL. The work has commenced in clusters identified by the discoms and equipment and other required goods are being procured.

The Union government has approved the Revamped Distribution Sector Scheme (RDSS) to help discoms improve their operational efficiencies and financial sustainability by providing result-linked financial assistance to discoms to strengthen supply infrastructure based on meeting pre-qualifying criteria and achieving basic minimum benchmarks.

The scheme has an outlay of Rs 3,03,758 crore over five years i.e. financial year 2021-22 to financial year 2025-26. The outlay includes an estimated government budgetary support of Rs 97,631 crore.

Under the RDSS, along with reducing the line losses (AT&C losses) of the power distribution sector, there is also a provision for improvement and strengthening of the power distribution network across the state. The scheme is to be implemented by 2025-26.

So far under RDSS 29 packages worth Rs 13,632.24 crore are being provided to all the five Discoms of UP to bring down the line losses. Project work has also started in all the five discoms with this amount. Under this, a sum of Rs 3,842.41 crore is being provided for the eight clusters of Purvanchal Vidyut Vitran Nigam Limited, while a provision of Rs 3,303.70 crore has been made for the seven clusters of Madhyanchal Vidyut Vitran Nigam Limited. There is a provision of Rs 2,764.33 crore for six clusters of Paschimanchal Vidyut Vitran Nigam Limited and Rs 3,247.07 crore for all seven clusters of Dakshinanchal Vidyut Vitran Nigam Limited. Apart from this, Rs 474.73 crore has been allotted to Kanpur Electricity Supply Company (KESCo).

According to the Centre's RDSS scheme, technical and commercial losses have to be cut by 12 to 15 per cent by 2024-25 while Average Supply Cost-Average Revenue Recovery (ACS-ARR) gap has to be reduced to zero by 2024-25.  The scheme also seeks strengthening and renovation of the power distribution system and ensuring uninterrupted supply of quality power to the consumers in the power distribution sector.

Project management agency (PMA) has been appointed in all discoms for implementation of the RDSS. In order to strengthen the distribution system, financial approval of Rs 18,885.24 crore was received on March 28, 2022 itself for system monitoring at feeder and distribution transformer level. At the same time, approval has been given for the work of Rs 16,498.61 crore to strengthen the power system in rural areas. Along with this, executive agencies have been appointed for loss reduction.  The process of tender for metering works is in process.