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Centre Disburses INR 37,000 Crore Under the Revamped Distribution Sector Scheme
Dec 06, 2025
The Central Government has released close to Rs 37,000 crore under the Revamped Distribution Sector Scheme (RDSS), amounting to about 38% of the total sanctioned Gross Budgetary Support meant to reinforce the country’s power distribution system.
The update was provided by Minister of State for Power Shripad Yesso Naik in a written reply to the Lok Sabha.
RDSS focuses on enhancing the quality and reliability of electricity supply by promoting financially sustainable DISCOMs. Fund allocation under the scheme is tied to strict milestone-based evaluations, with each state and DISCOM assessed through an individualised action plan before any release.
According to the Ministry of Power, no state currently has pending claims for distribution infrastructure works, indicating smoother and more efficient processing under the scheme.
For FY 2023–24, FY 2024–25 and FY 2025–26, sanction and release data show varied progress across states, with significant allocations directed toward Uttar Pradesh, Maharashtra, Rajasthan, Madhya Pradesh, Tamil Nadu, Andhra Pradesh, and others.