RDSS sanctions ₹1.53 lakh crore for loss reduction, ₹1.31 lakh crore for smart metering
Synopsis
Key Takeaways
The Revamped Distribution Sector Scheme (RDSS) has sanctioned financial assistance worth ₹1.53 lakh crore for loss reduction infrastructure works and ₹1.31 lakh crore for smart metering projects across India, Minister of State for Power Shripad Naik informed the Rajya Sabha on Monday, 10 August. The disclosures offer the most comprehensive public accounting of RDSS outlays since the scheme's launch.
Scale of Smart Metering Push
The smart metering component under RDSS covers 19.79 crore consumers, 2.05 lakh feeders, and 52.53 lakh Distribution Transformers (DTs). These installations are central to the government's drive to digitise the distribution segment and curb aggregate technical and commercial losses that have historically burdened state power utilities.
Of the total funds released under RDSS since FY2023, ₹47,124 crore has been disbursed to date, of which ₹2,733 crore has gone specifically toward smart metering works.
SCADA, IT/OT and Smart Distribution Works
SCADA (Supervisory Control and Data Acquisition) and Distribution Management System (DMS) works have been sanctioned for 394 towns at a cost of ₹2,627 crore. IT and operational technology (OT) systems — covering enterprise resource planning, unified billing, GIS, and real-time data acquisition — account for an additional ₹3,999 crore.
Smart distribution works worth ₹8,608 crore have been sanctioned for seven cities, encompassing SCADA and smart technology integration, GIS substations, Distribution Transformer health management, undergrounding of HT/LT lines, and system augmentation and modernisation.
India Energy Stack and Capacity Building
The government has also initiated the India Energy Stack (IES), envisioned as a universal digital enablement platform for data exchange across the power sector. The initiative is designed to accelerate digitalisation of distribution utilities nationwide.
For training and capacity building of DISCOM personnel in digital systems, RDSS allocated ₹100.9 crore. Of this, ₹23.36 crore has been utilised as of July 2026, with 14,853 personnel trained so far.
Centre-State Jurisdiction
Minister Naik noted that electricity is a concurrent subject under the Constitution, and the actual operations of Distribution Companies (DISCOMs) — including consumer-level distribution and digitalisation — fall within the purview of respective state governments and State Electricity Regulatory Commissions (SERCs). The Centre's role under RDSS is thus one of financial facilitation, not direct operational control.
With disbursements accelerating and the IES framework taking shape, the coming quarters will test whether state utilities can absorb and deploy sanctioned funds at the pace the scheme's targets demand.