PM Modi to launch revamped power distribution sector scheme tomorrow

Prime Minister Narendra Modi will virtually launch the revamped distribution sector scheme for the power sector during the grand finale of the 'Ujjwal Bharat Ujjwal Bhavishya – Power @2047' on Saturday.

The scheme has an outlay of more than Rs 3 lakh crore for a period of five years till the 2025-26 fiscal year. It aims to:

Improve operational efficiencies, financial sustainability of discoms and power departments

Provide financial assistance to discoms

Modernise and strengthen distribution infrastructure

Improve reliability and quality of supply to the end consumers

Reduce Aggregate Technical and Commercial (AT&C) losses to pan-India levels of 12-15 percent

Reduce Average Cost of Supply - Average Revenue Realized (ACS-ARR) gap to zero by 2024-25

The Prime Minister will also launch the national solar rooftop portal. It will enable online tracking of the installation process of rooftop solar panels — starting from registering the applications to the release of subsidy in residential consumers' bank accounts after the plant's installation and inspection.

He will also lay the foundation stone for NTPC's green energy projects worth Rs 5,200 crore. "He will inaugurate the 100 MW Ramagundam Floating Solar Project in Telangana and the 92 MW Kayamkulam Floating Solar Project in Kerala. He will lay the foundation stone of 735 MW Nokh Solar Project in Rajasthan, Green Hydrogen Mobility Project in Leh and Kawas Green Hydrogen Blending with Natural Gas project in Gujarat," a statement released by the Prime Minister's Office said.

The 'Ujjwal Bharat Ujjwal Bhavishya – Power @2047’ started on July 25 and will culminate on Saturday. The programme is being held as part of the ongoing 'Azadi Ka Amrit Mahotsav'. It is being organised across the country and displays the power sector's transformation in the last eight years.

Talking about the new power scheme, Harshvardhan Dole, Vice President - Institutional Equities, IIFL, said, "Unfortunately, unlike oil, where there is single ministry controlling the whole sector, here you have individual states, and to that extent, revival of discoms is slightly challenging."

He said they are hoping that the scheme is implemented in totality this time, there is strict monitoring and that positive results come out of it.

"Whatever reforms have been proposed, so far, only select states can implement them. Majority of them take benefit of the financial assistance and when it comes to hard measures, they are being soft in terms of tariff increases or implementing smart metering, etc. So, this time, all fingers crossed. Let's hope it works out," he added.