The Centre has cleared a proposal submitted by Kerala for the roll-out of the Centrally assisted Revamped Distribution Sector Scheme (RDSS) in the State's power sector, paving the way for its implementation from 2022-23.
The Centre has approved a project cost of ₹10,475.03 crore, which includes ₹8,175.05 crore for the roll-out of smart meters working in prepayment mode and a ₹2,235.78-crore proposal for infrastructure and loss reduction in the distribution sector. The latter component includes supervisory control and data acquisition (SCADA) works for Kollam, Thrissur and Kannur cities.
A detailed project report (DPR) prepared by the Kerala State Electricity Board (KSEB) and vetted by a panel headed by the Chief Secretary and an action plan cleared by the State Cabinet were approved by the RDSS monitoring committee chaired by the Union Secretary (Power) on March 15.
Of the ₹10,475.03 crore, Central grants constitute ₹2,606.24 crore. The approved project cost also includes project management agency grants totalling ₹64.20 crore.
Pre-paid smart metering of electricity is a major component of the RDSS, which is a national-level ''reforms-based and results-linked'' scheme cleared by the Union Cabinet in June last year for improving power supply and the operational efficiency and financial sustainability of DISCOMS.
For installing the meters, the Centre will meet 15% of the cost, provided that it does not exceed ₹900 per meter. For loss reduction works, Central assistance is to the tune of 60%.
As per the Capital Investment Plan of the KSEB for 2022-23, the prepaid smart meter will be introduced for all categories of consumers in a phased manner by December 2025. By December 2023, the KSEB hopes to have in place 37.15 lakh meters for various consumer categories, including 10.45 lakh domestic consumers with a monthly average consumption above 200 units.
The RDSS will serve to improve the quality of the power supplied and build a robust and sustainable distribution network. The scheme also offers assistance, subject to conditions for enhancing infrastructure.