Maharashtra govt approves power distribution reform scheme worth Rs 39,602 crore

Keeping in mind the need for further empowerment and modernization of the current electricity distribution system to meet the increasing demand of electricity in the future, the state government has approved the Revamped Distribution Sector Scheme(RDSS) of about Rs 39,602 core. This aims to improve the quality of electricity supply, reduce distribution losses and enhance consumer service.

In order to improve the financial stability of the power distribution companies in the state, the RDSS will be implemented with the financial assistance of the Central Government. ‘’Due to this scheme, there will be a radical change in the power distribution system of the state run power distribution company MahaVitaran. Features of the scheme are to improve financial stability and operational efficiency through conditional financial assistance, strengthen basic distribution infrastructure, improve quality and availability of power supply, focus on energy audit through smart metering and provide funds for power loss reduction works,’’ said a MahaVitaran officer.

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

The scheme envisages installation of smart meters 1.66 crore consumes with the expenditure of Rs 11,105 crore. On the reduction in distribution losses, the MahaVitaran will incur an expenditure of Rs 14,231 crore for the construction of 527 new 33/11 KV sub-stations at various places in the state, capacity enhancement of 705 sub-stations, installation of about 29 thousand 893 new distribution transformers and development of SCADA system in 21 cities of the state etc. Similarly, about Rs 14,266 crore will be spent on empowerment and modernization of power distribution system.