Latest News | Par Panel Asks Power Min to Hike Outlay for RDSS at RE Stage

New Delhi, Mar 22 (PTI) A Parliamentary panel has suggested the power ministry to enhance the fund allocation for Revamped Distribution Sector Scheme (RDSS), which is aimed at revival of distribution companies, during 2022-23 at revised estimate stage.

"They also express their concern over the less allocation of funds for this important scheme and recommend that the Ministry should earnestly pursue for enhancement of the budgetary allocation for this scheme (RDSS) at RE (revised estimate) stage and also for the next financial year," Parliamentary Standing Committee on Energy stated in its 25th report on Demand of Grants for 2022-23 of Ministry of Power, tabled in Parliament on Tuesday.

Also Read | China Plane Crash: What We Know So Far About the China Eastern Plane Crash in Guangxi Region.

It noted that the ministry had launched RDSS for improving operational efficiencies and ensuring the financial sustainability of the distribution sector.

It also noted that the objectives of this scheme are to improve the quality, reliability and affordability of power supply to consumers through a financially and operationally efficient distribution sector, reduction in AT&C (aggregate technical & commercial) losses at pan India levels of 12-15 per cent by 2024-25, and reduction in ACS-ARR (Average Cost of Supply and Average Revenue Realized) gap to zero by 2024-25.

Also Read | Punjab: Services of 35,000 Contractual Employees To Be Regularised, Says CM Bhagwant Mann.

The total outlay for the scheme is Rs 3,03,758 crore including Gross Budgetary Support (GBS) of Rs 97,631 crore. The scheme duration is 5 years, from 2021-22 to 2025-26.

The Smart Metering component alone has a share of Rs 1,50,000 crore.

For the year 2022-23, a provision of Rs 7,565.59 crore has been made for the scheme.

The Committee find that the amount allocated for the new scheme is less than the total budgetary allocation of Rs 8,900 crore for 2021-22 of the two schemes i.e. DDUGJY and IPDS which will be subsumed in it.

The Committee also noted that as per the planning of the Expenditure Finance Committee, there had to be a budgetary allocation of Rs 10,000 crore for this scheme for fiscal 2022-23.

About the overall budget outlay, the Ministry should try to fully utilize the funds allocated at the BE stage of 2022-23 in a time bound manner so that additional demands can be posted at the time of supplementary Demands for Grants.

It also suggested that utmost effort be made in future to ensure that the funds are evenly utilized during each quarter as per the norms prescribed by the Ministry of Finance in this regard.

It also stated that the quality and reliability of the Smart Meters should be ensured through their mandatory quality check by independent institutions like CPRI (central power research institute).

The Government should consider running awareness programmes so that any doubt relating to the working of Smart Meters in the minds of end consumers can be dispelled, it suggested.

The Committee noted that the Ministry of Power had submitted a requirement of Rs. 80 crore under the head of ‘Support for flood moderation storage hydroelectric projects'.

The Committee, however, stated that it is disappointed with the ‘Nil' allocation as per ceiling at Final BE 2022-23 for such a vital tool for the promotion of hydroelectric power.

The Committee have long been advocating for such financial incentives and support for the hydroelectric projects to give a much-needed boost to the sector.

The Committee strongly recommend the ministry to take up this matter at the appropriate level and make efforts to get the allocation for this vital programme at the time of Supplementary Demands.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)