Rs 3.03 lakh cr power scheme in Cabinet on Wednesday

The Rs 3.03 lakh crore power distribution reforms scheme announced in Budget this year will be considered by the Union Cabinet on Wednesday, sources said. The five-year revamped reforms-based, result-linked power distribution scheme of financial assistance to discoms will target infrastructure creation and system up-gradation.

Of the total allocation of Rs 3,03,058 crore, the central share will be Rs 97,631 crore, finance minister Nirmala Sitharaman said on Monday. “We expect it is one of the major reforms with state specific intervention in place of one size fits all,” she said.

The participation under the scheme will be contingent to pre-qualification criteria like publication of audited financial reports of power distribution companies, upfront liquidation of state government’s dues and subsidies to discoms and non–creation of additional regulatory assets.

The scheme is expected to install 25 crore smart meters, 10,000 feeders and 4 lakh km of low tension overhead lines. The government proposes to merge ongoing works of Integrated Power Development Scheme, Deen Dayal Upadhyay Gram Jyoti Yojana and Pradhan Mantri Sahaj Bijli Har Ghar Yojana (Saubhagya).

Sitharaman said states have already been allowed additional borrowing for four years upto 0.5% of Gross State Domestic Product annually (Rs 1,05,864 Cr for 2021-22) subject to carrying out specified power sector reforms.