RDSS: INR 2.78 Lakh Crore Sanctioned for Smart Metering and Loss Reduction Across India

The Government of India, through the Revamped Distribution Sector Scheme (RDSS), has made significant strides in strengthening the country’s power distribution infrastructure, with projects worth INR 2.78 lakh crore sanctioned for 32 States and Union Territories.

In response to a question in the Rajya Sabha, Minister of State for Power Shripadusk Naik provided an update on RDSS implementation, highlighting progress in Uttar Pradesh and across the country. The scheme, launched in July 2021 with a total outlay of INR 3,03,758 crore, including INR 97,631 crore in gross budgetary support, aims to enhance the financial sustainability and operational efficiency of power distribution companies (DISCOMs). He disclosed that as of March 2025, projects worth INR 2.78 lakh crore have been sanctioned under the scheme for loss reduction and smart metering works.

Uttar Pradesh has been sanctioned INR 21,341 crore under RDSS, with 80 percent of contracts awarded and 37.66 percent of physical work completed. Among other states, Bihar (53.57 percent), Tripura (42.17 percent), and Assam (41.41 percent) have recorded significant progress, while Nagaland, Puducherry, and Delhi have yet to initiate physical work. The nationwide average completion stands at 23.18 percent, with Goa (71.06 percent) and Bihar leading the way.

Smart metering is a key focus of RDSS, aiming to reduce distribution losses, improve billing accuracy, and enable automated energy accounting. Across the country, 1.21 crore consumer smart meters have been installed out of the sanctioned 19.79 crore, alongside 4.24 lakh distribution transformer (DT) meters and 94,275 feeder meters. States making notable progress in smart meter installations include Bihar (18.17 lakh), Assam (27.16 lakh), Madhya Pradesh (15.92 lakh), and Uttar Pradesh (11.93 lakh).

To tackle Aggregate Technical and Commercial (AT&C) losses, RDSS has sanctioned INR 1.48 lakh crore for network strengthening, including substation upgrades, improved conductor capacity, and feeder segregation. Additionally, regulatory and financial reforms such as timely subsidy payments, accurate energy accounting, and the implementation of Fuel and Power Purchase Cost Adjustment (FPPCA) have contributed to efficiency improvements. These efforts have helped reduce AT&C losses from 21.91 percent in FY21 to 16.28 percent in FY24.

The Government of India continues to support electrification efforts in economically weaker districts through RDSS and other flagship schemes like Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY), Integrated Power Development Scheme (IPDS), and SAUBHAGYA. Under RDSS, INR 4,643 crore has been sanctioned for the electrification of 10.19 lakh households, particularly those belonging to Particularly Vulnerable Tribal Groups (PVTG) under PM-JANMAN and tribal communities under DA-JGUA.

The implementation of RDSS is expected to transform India’s power distribution sector, making it financially viable and operationally efficient while ensuring reliable electricity access nationwide.