Maharashtra government approves power distribution reform package worth Rs 39,602 crore


Bearing in mind the need for further empowerment and modernization of the current electricity distribution system to meet the growing demand for electricity in the future, the state government has approved the revamped program of the distribution sector (RDSS) of approximately Rs 39,602 base. The objective is to improve the quality of electricity supply, reduce distribution losses and improve service to consumers.

In order to improve the financial stability of the state electricity distribution companies, the RDSS will be implemented with the financial assistance of the central government. “Because of this program, there will be a drastic change in the electricity distribution system of the MahaVitaran Electricity Distribution Company. The features of the program are to improve financial stability and operational efficiency through conditional financial assistance, strengthen basic distribution infrastructure, improve the quality and availability of power supply, focus on energy auditing through smart meters and to provide funds for energy loss reduction works,” said an Officer MahaVitaran.

The main objectives of the RDSS are to provide quality, reliable and affordable power supply to MahaVitaran consumers, reduce technical and commercial losses to 12-15% by fiscal year 2024-25 and reduce the gap between average cost per unit of electricity supply and average revenue per unit by fiscal year 2024-25”, the officer said.

The program envisions the installation of smart meters consuming 1.66 crore with expenditure of Rs 11,105 crore. On reducing distribution losses, the MahaVitaran will incur an expenditure of Rs 14,231 crore for the construction of 527 new 33/11 KV substations at various locations in the state, upgrading the capacity of 705 substations , the installation of about 29 thousand 893 new distribution transformers and the development of the SCADA system in 21 cities in the state, etc. Similarly, about Rs 14,266 crore will be spent on empowerment and modernization of the power distribution system.


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