SHILLONG, Dec 21: The State Cabinet on Tuesday approved the action plan for the Revamped Distribution Sector Scheme (RDSS) implemented by the Power Ministry under which Meghalaya is expected to receive a fund of Rs 2,500 crore for improvement of the distribution system and implementing 100% metering system in the state.
The Centre launched the RDSS to help power distribution companies (DISCOMs) improve their operational efficiencies and financial sustainability by providing result-linked financial assistance to DISCOMs to strengthen supply infrastructure based on meeting pre-qualifying criteria and achieving basic minimum benchmarks. The scheme has an outlay of over Rs 3 lakh crore over five years from financial year 2021-22 to 2025-26.
Speaking to media persons after the Cabinet meeting, Chief Minister, Conrad Sangma said the state government will submit a proposal of Rs 2500 crore to the Ministry of Power and the money will be utilised to revamp the distribution sector for a period of 5 years.
About 13-14% of the fund will be will be utilised for the smart metering project while rest of the funds will be for improvement of distribution lines.
The CM said that the state will get funding to the tune of Rs 1,350 per meter as subsidy and this will be supported as 90:10 grant from the central government.
The state government may take around 8-9 months to process the schemes and the implementation may start by the end of next year, Sangma said, while adding that if the scheme is completed by 2023, the state will get additional incentives from the Centre.
Making it clear that that the State will not be required to spend even a single rupee from its kitty, the chief minister said that the move is a step towards improving things in the Meghalaya Energy Corporation Limited which will result in AT&C losses being reduced.
“We are working towards 100% metering but we have also realized that metering is a challenge and we need to make people aware of the same. So we are going to spend around 8-9 months on creating awareness on smart metering,” he added.
