The center will invest more than Rs 3 lakh crore to improve the distribution of electricity by 2025


Center will invest more than Rs three lakh crore as part of the revamped distribution sector program to ensure uninterrupted 24 × 7 power supply to all consumers by 2025-2026, said Union Energy Minister , RK Singh.

He said the program aimed to reduce AT&C losses (technical and commercial aggregates) to 12-15% and eliminate the ACS-ARR (average cost to supply and average realized income) gap at the pan-Indian level of here the 2024-25 fiscal year, the minister said. Currently, AT&C losses are over 20 percent and for a healthy distribution system they should be around 10 percent.

The formulation of plans by different states has been reviewed and all states and DISCOM are making good progress in preparing action plans and DPRs in line with program guidelines, the minister said. He chaired a meeting with the additional chief secretaries and principal secretaries of other senior officials to review the planning and monitoring of the ongoing overhaul of the distribution system.

He told senior officials of state electricity departments that an operationally efficient and financially viable electricity distribution sector was needed. The Union Energy Ministry also appreciated the efforts of state governments to achieve 100% electrification under the Saubhagya regime and the DDUGJY regimes. The ministry said that improving the financial viability of DISCOMs would not only attract investment in the electricity sector, but also benefit consumers through lowering the cost of electricity and improving services to consumers. consumers.

The Minister also highlighted the many benefits of the PM-KUSUM program, mainly in the form of additional income and cheaper electricity for farmers. “State governments would also benefit from a reduction in the subsidy burden. In addition, it would also benefit the environment in the form of clean and green energy production, ”the minister told state government officials.


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