Revamped Distribution Sector Scheme

On 30th June, 2021, the Union Cabinet approved a Reforms-based and Results-linked, Revamped Distribution Sector Scheme.

  • This is the second reform scheme for power distribution companies (discoms) announced by the government, a year after the ambitious UDAY (Ujjawala Discom Assurance Yojana) scheme concluded in March 2020.
  • Nodal agencies for the scheme’s implementation are Rural Electrification Corporation (REC) Limited and Power Finance Corporation (PFC).

Need

  • State-owned discoms across the country continue to be financially and operationally beleaguered despite four reform schemes in the last 15 years.
  • The earlier discom reform scheme UDAY concluded in March 2020, with most of the states failing to ....
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