- Why in news
- On 30 March 2026, the Power Ministry told the Rajya Sabha that RDSS works worth Rs 2.83 lakh crore are sanctioned and AT&C losses fell to 15.04% in FY25.
- What it is
- The Revamped Distribution Sector Scheme (RDSS) is a Centre-backed reform scheme for power distribution companies (DISCOMs), launched in 2021. It funds loss-reduction works and smart metering. Funds are tied to DISCOMs meeting operational and financial performance conditions.
- Objective
- RDSS aims to cut AT&C losses to 12-15% and close the gap between Average Cost of Supply and Average Revenue Realised.
- Sanctioned outlay
- Rs 1.53 lakh crore is sanctioned for loss reduction and Rs 1.31 lakh crore for smart metering, on State proposals.
- Monitoring bodies
- PFC and REC are nodal agencies. A State Distribution Reforms Committee is headed by the Chief Secretary. A central Inter-Ministerial Monitoring Committee is headed by Secretary (Power).
- Conditional funding
- Funds are released only if DISCOMs improve parameters such as timely subsidy payment, regular tariff orders, publishing accounts and not creating regulatory assets.
- Loss trend
- National AT&C losses fell from 21.91% in FY21 to 15.04% in FY25.
Don’t confuse with AT&C loss vs ACS-ARR gap: AT&C loss measures energy lost and revenue not collected. The ACS-ARR gap is the per-unit difference between cost of supplying power and revenue realised.
Don’t confuse with RDSS vs UDAY: UDAY (2015) was a DISCOM debt restructuring scheme. RDSS (2021) gives results-linked funding for infrastructure and metering.
Schemes: 52 Prelims questions since 2013, 10 in Prelims 2026 alone. They test features, the period and who funds it. In Mains, 33 news-triggered questions, mostly GS3.
Why it matters
- Lower AT&C losses and better collection improve DISCOM finances, which supports a financially sound power sector.
Problems
- Smart meter rollout lags: 4.69 crore installed against 20.33 crore sanctioned, partly due to consumer confidence concerns.
Way forward
- Build consumer trust through check meters, rebates and no penalty on recorded maximum demand, and keep funding tied to State reforms.
- 2016Mains GS3 · Q11Discuss renewable energy status and the importance of the national LED programme.
- 2018Mains GS3 · Q1Comment on India's progress toward affordable, reliable, modern energy access for SDGs.
UPSC’s own questions that come close to this issue, from our Prelims and Mains banks.
No practice question for this one; the card may still help an answer. Why: Lasting scheme with AT&C loss target of 12-15% and smart metering; schemes are 52 of 327 Prelims questions but this reply adds little fresh.
Worth revising until Prelims 2027: most news questions come within two years of the event.