, India

New measure to improve power supply reliability in India

This includes the Reforms-based and Results-linked Revamped Distribution Sector Scheme.

The government of India launched the Reforms-based and Results-linked Revamped Distribution Sector Scheme, which intends to improve the quality and reliability of power supply. 

The scheme provides an outlay of INR3.037t and an estimated INR976.3b GBS from the Central Government. 

READ MORE: India may fail to reach 500GW target by 2030: report

The government also put in place several interventions to improve the financial and operational efficiencies of distribution companies (DISCOMS) in India. 

This includes the Liquidity Infusion Scheme (LIS), and additional borrowing of 0.5% of GSDP to states linked to power sector reforms.

The government also introduced additional prudential norms for lending by Power Finance Corporation Limited and REC Limited based on the performance of utilities. 


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