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The Union Cabinet has approved the revamped, reforms-based and results-linked distribution sector scheme for supporting discoms to undertake reforms and improve performance in a timebound manner, as was announced in the FY22 Union Budget.
The scheme is aimed at providing 24×7 uninterrupted, quality, reliable and affordable power supply and seeks to improve discoms’ operational efficiencies and financial sustainability based on state-specific action plans.
Total outlay for the scheme is Rs 3,038 billion over FY22-FY26. The scheme is positive for all players across the power sector value chain.
We believe this is a precursor to ‘perform or perish’ for inefficient discoms.
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