DISCOMs schemes from history to present of India

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The history of electricity distribution schemes in India by Distribution Companies (DISCOMs) reflects the evolution of the power sector to address the country's growing energy demands and ensure reliable supply. Here is an overview of DISCOM schemes, starting from earlier reforms to current programs:

1. Early Reforms (Pre-2000)

Electricity distribution in India was initially handled by state electricity boards (SEBs). These boards were vertically integrated, managing generation, transmission, and distribution. However, inefficiencies like losses, theft, and inadequate infrastructure led to poor performance.

  • Electricity (Supply) Act, 1948: Formation of SEBs for integrated management.
  • Challenges: High Aggregate Technical and Commercial (AT&C) losses and poor service delivery.

2. Unbundling and Restructuring (Post-2000)

The focus shifted to unbundling SEBs into generation, transmission, and distribution entities. This era saw the rise of independent DISCOMs.

  • Electricity Act, 2003:
    • Mandated the unbundling of SEBs.
    • Promoted open access and competition in distribution.
  • States: Most states established independent DISCOMs. For example, Andhra Pradesh Southern Power Distribution Company Ltd. (APSPDCL) and Maharashtra State Electricity Distribution Co. Ltd. (MSEDCL).
  • Goal: Improve operational efficiency and financial sustainability.

3. Accelerated Power Development and Reforms Programme (APDRP) (2002)

  • Objective: Reduce AT&C losses and improve financial viability.
  • Focus: Infrastructure upgrades, energy accounting, and IT integration.

4. Restructured Accelerated Power Development and Reforms Programme (R-APDRP) (2008)

  • Successor to APDRP with a greater focus on IT-enabled systems for accurate energy accounting.
  • Components:
    • Part A: Establishment of baseline data using IT applications.
    • Part B: Strengthening distribution networks.

5. Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY) (2005)

  • Focus: Rural electrification and extending electricity to Below Poverty Line (BPL) households.
  • Features:
    • Electrification of villages.
    • Creation of Rural Electricity Distribution Backbone (REDB).

6. Integrated Power Development Scheme (IPDS) (2014)

  • Merged APDRP and RGGVY for urban and semi-urban areas.
  • Key Initiatives:
    • Strengthening sub-transmission and distribution networks.
    • Metering of feeders, distribution transformers, and consumers.
    • IT-enabling for improved monitoring.

7. Deendayal Upadhyaya Gram Jyoti Yojana (DDUGJY) (2015)

  • Focused on rural electrification and feeder separation (agriculture vs. non-agriculture).
  • Benefits:
    • Improved power availability for farmers.
    • Enhanced rural household connectivity.

8. Saubhagya Scheme (Pradhan Mantri Sahaj Bijli Har Ghar Yojana) (2017)

  • Aim: Universal household electrification.
  • Implementation: Free electricity connections for BPL households.
  • Outcome: Significant increase in household electrification, especially in rural India.

9. Ujwal DISCOM Assurance Yojana (UDAY) (2015)

  • Objective: Financial turnaround of DISCOMs.
  • Features:
    • Debt restructuring and reduction.
    • Improved operational efficiency via smart meters and feeder metering.

10. Revamped Distribution Sector Scheme (RDSS) (2021)

  • Latest initiative to modernize and enhance the operational efficiency of DISCOMs.
  • Focus Areas:
    • Loss reduction through infrastructure upgrades.
    • Consumer service enhancement via prepaid smart meters.
    • Financial support tied to performance.

11. Electricity (Amendment) Act (Proposed Reforms)

  • Proposals to increase competition in the distribution sector by allowing multiple DISCOMs in a single area.
  • Introduction of a new tariff policy focusing on cost-reflective tariffs.

12. Current Trends and Challenges

  • Smart Grids: Implementation of modern technologies for efficiency.
  • Decentralized Distribution: Adoption of microgrids and distributed energy resources (DERs).
  • Private Participation: Entry of private DISCOMs like Tata Power Delhi Distribution Limited (TPDDL).
  • Challenges: AT&C losses, tariff rationalization, and subsidy burdens.

Conclusion

The evolution of DISCOM schemes in India reflects a transition from centralized control to a market-driven approach, emphasizing operational efficiency, rural connectivity, and consumer satisfaction. However, challenges like financial losses and technological adoption remain focal areas for ongoing reforms.

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