Ziraat Times News Desk
New Delhi, Dec 8: India’s aggregate technical and commercial (AT&C) losses in the power distribution sector have fallen sharply from 21.91% in FY 2020–21 to 16.16% in FY 2024–25, according to the Ministry of Power. The reduction follows a series of policy interventions and reforms aimed at improving financial sustainability and operational efficiency in State-run power distribution utilities.
Minister of State for Power Shripad Yesso Naik informed the Rajya Sabha on Monday that both the Centre and States have jointly pushed several structural reforms that have begun to show measurable results.
Revamped Distribution Sector Scheme Key Driver
A major contributor to the improvement is the Revamped Distribution Sector Scheme (RDSS), launched to enhance the quality and reliability of power supply. The scheme targets reducing AT&C losses to 12–15% nationwide and eliminating the ACS–ARR (cost-revenue) gap.
Under RDSS:
-
Projects worth ₹2.83 lakh crore have been sanctioned.
-
Distribution infrastructure upgrades worth ₹1.53 lakh crore include conductor replacement, LT AB cabling, transformer and sub-station augmentation, and agricultural feeder segregation.
-
Funding is tied to utility performance, especially AT&C loss levels and ACS–ARR gap.
-
Prepaid smart metering, a key intervention under the scheme, is expected to further curb losses and boost billing efficiency.
Additional Financial Reforms
The Centre has also adopted several measures to push States toward deeper power sector reforms:
-
Additional borrowing space of 0.5% of GSDP for States undertaking specific power reforms.
-
Stricter prudential norms for loans to State power utilities, linked to performance improvements.
-
New rules for Fuel and Power Purchase Cost Adjustment (FPPCA) and cost-reflective tariffs to ensure timely pass-through of legitimate costs.
-
Standardised procedures for accurate subsidy accounting and prompt subsidy payments.
Comments are closed.