MP’s Discoms receives Rs 15000 cr for improving sustainability

01 Mar 2022

Madhya Pradesh power distribution companies (Discoms) will receive Rs 15,000 cr for improving operational efficiencies and financial sustainability.

Sanjay Dubey, principal secretary (energy), told the media that of the total outlay of Rs 15,000 crore, 60% will be borne by the Central government, with the remaining 40% coming from the state government.The government has budgeted for its contribution.

The amount has been approved under the Revamped Distribution Sector Scheme (RDSS), which is based on reforms and results.

This sum must be split among the state's three power distribution companies. The scheme would be implemented based on a well-thought-out action plan rather than a one-size-fits-all approach.

The RDSS aims to improve operational efficiencies and financial sustainability by providing Discoms with result-linked financial assistance for supply infrastructure strengthening if they meet pre-qualifying criteria and meet basic minimum benchmarks. According to a Madhya Pradesh West Zone Electricity Distribution Company official, the scheme will be available until 2025-26.

The scheme focuses on improving farmers' access to electricity and providing daytime electricity through the solarisation of agricultural feeders.

Agricultural connections would only be covered through feeder metres due to the dispersed nature of agricultural connections and their distance from habitations.

Consumer empowerment through prepaid smart metering to be implemented in a public-private-partnership (PPP) model, is a key feature of the scheme.

Artificial Intelligence will be used to analyse data generated by IT or OT devices such as System Metres and Prepaid Smart Metres to generate monthly system-generated energy accounting reports that will allow Discoms to make informed decisions on loss reduction, demand forecasting, Time of Day (ToD) tariff, Renewable Energy (RE) Integration, and other predictive analysis. This would go a long way toward improving the discoms' operational efficiency and financial sustainability.

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Also read: Indore spends Rs 69 cr to enhance power distribution system in FY22