Pre-paid smart metering and total energy accounting in the power sector is going to be the top priority of the Modi Government in the coming four years for which it has already kept a budget outlay of Rs 3,03,758 crore.

The Centre would give estimated budgetary support of Rs 97,631 crores to state Power companies, which would be available till FY 2025-26. The Power Ministry has already launched a reform-based results-linked, Revamped Distribution sector Scheme targeting to improve the operational efficiencies and financial sustainability of state-owned DISCOMs.

As per the scheme, the Centre would provide assistance to DISCOMs for modernization and strengthening of distribution infrastructure to improve the reliability and quality of supply to end consumers, said a senior officer of the Power Ministry.

Presently, state Governments of Meghalaya and Assam have become the frontrunners in planning their operational and financial reforms as well as the underlying works to accomplish the same under Revamped Distribution Sector Scheme.

Their Action Plans include multiple reform measures aimed towards loss reduction, implementation of smart prepaid metering of the majority of their consumer base, and 100% feeder level energy accounting by the financial year 2023, the officer said.

The Centre has also asked states to include reconductoring of old/frayed conductors, conversion to LT ABC, bifurcation of feeders, segregation of agriculture feeders, and up-gradation of billing and other IT/OT systems in their Action plan to reform and revamp the Power sector.

With this, the States would be able to ensure the financial viability of the fiscally stressed Discoms implement tariff reforms and take measures to modernize its consumer services.

Following the exemplary initiatives taken by two states, several other states are coming forward to reform and revamp their power sector. Most of the states are in the advanced state of submission of their proposal.

Besides, 39 out of 55 beneficiaries Discoms (Nodal Agencies REC and PFC) have already submitted their draft proposals and are in active discussions with Nodal Agencies for their finalization, while the balance Discoms are also expected to send their proposals shortly, the Power Ministry said.

Key interventions envisioned under this program include providing support to DISCOMs to undertake activities for ensuring 100% System metering, implementing Prepaid Smart Metering, Energy Accounting, and implementing infrastructure works for Loss Reduction.

The states have also been told to modernize and augment their power infrastructure to give quality and reliability of power supply, the Ministry said.

The government has also proposed segregation of feeders dedicated only for the supply of power for agricultural purposes, which are proposed to be solarized under the KUSUM scheme, the Ministry states.