·PIB

PROGRESS ON SMART METER INSTALLATION UNDER RDSS

In this note
  1. At a Glance
  2. Why in the News
  3. Background & Evolution
  4. Core Static Facts
  5. Multi-Dimensional Analysis
  6. Recent Developments (last 12-18 months)
  7. Prelims Hooks
  8. Mains Relevance
  9. Related Topics to Study Next
  10. Common Errors / Trap Areas

1. At a Glance

  • RDSS = Revamped Distribution Sector Scheme; a reforms-based, results-linked Central Sector Scheme of the Ministry of Power to fix DISCOM finances and supply quality [1][2].
  • Smart metering of consumers, distribution transformers (DTs) and feeders is one of its flagship components — the largest AMI (Advanced Metering Infrastructure) rollout in the world [1][3].
  • Examinable for Prelims (scheme facts, AT&C losses, nodal agencies) and Mains GS-III (infrastructure/energy, DISCOM reform).

2. Why in the News

  • PIB release dated 02 Feb 2026 reported that 3.90 crore smart meters had been installed under RDSS as on 31 Dec 2025, with total country-wide installation (RDSS + State plans) at 5.28 crore [1].

3. Background & Evolution

  • Launched July 2021 by Government of India for FY 2021-22 to FY 2025-26 (5 years) [1][2].
  • Outlay: ₹3,03,758 crore; estimated Gross Budgetary Support (GBS) from Centre: ₹97,631 crore [2].
  • Subsumes earlier distribution schemes — IPDS (Integrated Power Development Scheme) and DDUGJY (Deen Dayal Upadhyaya Gram Jyoti Yojana) [2].
  • Predecessor metering effort: Smart Meter National Programme (SMNP) under EESL [4].

4. Core Static Facts

  • Ministry: Ministry of Power (MoP), Government of India [1].
  • Nodal Agencies: REC Limited and PFC Limited (PSU NBFCs under MoP) [5].
  • Implementation Model: TOTEX (Total Expenditure) / AMISP — Advanced Metering Infrastructure Service Provider, DBFOOT basis [5].
  • Sanctioned coverage (RDSS): 45 distribution utilities in 28 States/UTs; 19.79 crore consumer meters, 52.53 lakh DTs, 2.05 lakh feeders [1].
  • Originally envisaged target (Part-A): 25 crore prepaid smart meters nationwide [2].
  • Components: Part-A — Prepaid Smart Metering + System Metering + Distribution Infra upgrade; Part-B — Training, Capacity Building, Enabling Activities [2].
  • Targets: reduce AT&C losses to 12-15% pan-India; ACS-ARR gap to zero by 2024-25 [2].

5. Multi-Dimensional Analysis

Economic

  • Aims to fix structural losses of DISCOMs; AT&C losses dropped from ~22.3% (FY21) to ~16.4% (FY22) [6].
  • Prepaid model improves DISCOM cash-flow and reduces working-capital borrowings [2].

Technological

  • AMI rollout enables two-way communication, remote disconnect/reconnect, outage detection, time-of-day tariffs and integration with renewables/EV [5].
  • Daily installation rate ~80,000 meters scaling toward 1 lakh/day [5].

Administrative / Federal

  • Power is a Concurrent List subject; DISCOMs are State entities — scheme conditions funding on State reform action plans evaluated by MoP [2].
  • Front-runners: Bihar (~63 lakh) and Assam (~32 lakh) smart meters installed (as on Mar 2025) [5].

Social / Consumer

  • Eliminates manual meter reading, faulty billing, estimated bills; enables consumer-side monitoring via apps [5].
  • Concerns: prepaid model can disconnect poor consumers if balance lapses (equity issue, not in primary source).

6. Recent Developments (last 12-18 months)

  • 15 Jul 2025: 2.41 crore smart meters installed under RDSS against 20.33 crore sanctioned [5].
  • 2024-25: utilities used ~96% of funds released (till Feb 2025); ~₹12,600 crore budgeted for 2025-26 [5].
  • 31 Dec 2025: 3.90 crore under RDSS; 5.28 crore total nationwide [1].
  • 02 Feb 2026: latest PIB progress note released by Ministry of Power [1].

7. Prelims Hooks

  • RDSS launched in July 2021 by Ministry of Power [1][2].
  • Total scheme outlay: ₹3,03,758 crore; Central GBS ₹97,631 crore [2].
  • Scheme duration: FY 2021-22 to FY 2025-26 [2].
  • Two nodal agencies: PFC and REC [5].
  • Smart metering sanctioned: 19.79 crore consumer meters, 52.53 lakh DTs, 2.05 lakh feeders [1].
  • Coverage: 45 utilities across 28 States/UTs [1].
  • Installed under RDSS as on 31 Dec 2025: 3.90 crore; nationwide total 5.28 crore [1].
  • Original Part-A target: 25 crore prepaid smart meters [2].
  • AT&C loss target: 12-15%; ACS-ARR gap target: zero by 2024-25 [2].
  • AT&C losses fell from 22.3% (FY21) → 16.4% (FY22) [6].
  • RDSS subsumes IPDS and DDUGJY [2].
  • Implementation model: TOTEX / AMISP (DBFOOT) [5].
  • Leading States in installs: Bihar, Assam [5].

8. Mains Relevance

  • GS-IIIInfrastructure: Energy; Indian Economy & issues relating to mobilisation of resources.
  • GS-IIGovernment policies and interventions / Centre-State relations (Concurrent List subject).
  • Possible question stems: 1. "Smart metering is necessary but not sufficient to revive India's DISCOMs." Critically examine in light of RDSS progress. 2. Discuss the role of RDSS in reducing AT&C losses; what challenges does federal implementation pose? 3. Examine the trade-offs between prepaid smart metering and consumer welfare for vulnerable households.

9. Related Topics to Study Next

  • Electricity Act, 2003 — statutory backbone for distribution reform.
  • UDAY (2015) — earlier DISCOM bailout; compare outcomes with RDSS.
  • DDUGJY & IPDS — predecessors subsumed by RDSS.
  • PM-Surya Ghar: Muft Bijli Yojana (2024) — rooftop solar, links with net-metering.
  • Cross-Border Power Trade / One Sun One World One Grid — adjacent power-sector reforms.
  • AT&C losses & ACS-ARR gap — definitional concepts often asked.
  • CERC/SERCs and Forum of Regulators — regulatory architecture.
  • Electricity (Amendment) Bill — privatisation of distribution debate.

10. Common Errors / Trap Areas

  • RDSS is Ministry of Power, NOT MNRE.
  • Nodal agencies are PFC + REC, not EESL (EESL ran the earlier SMNP).
  • Launch year 2021, not 2020; duration 5 years to FY26.
  • RDSS subsumed IPDS/DDUGJY — they were not run in parallel after 2021.
  • Sanctioned ≠ installed: 19.79 cr sanctioned vs 3.90 cr installed (Dec 2025) under RDSS.
  • "5.28 crore" is the all-India total (RDSS + State schemes), not RDSS alone.

Sources

  1. 1PROGRESS ON SMART METER INSTALLATION UNDER RDSS, PIB, 02 Feb 2026pib.gov.in · tier 1
  2. 2Government of India launches Revamped Distribution Sector Scheme (RDSS), PIBpib.gov.in · tier 1
  3. 3PM launches Power Sector's Revamped Distribution Sector Scheme, PIBpib.gov.in · tier 1
  4. 4Smart Meter National Programme – Model SBD released, PIBpib.gov.in · tier 1
  5. 5Smart Meters Installed Under RDSS, PIBpib.gov.in · tier 1
  6. 6National Level AT&C Losses down from 22.3% to 16.4%, PIBpib.gov.in · tier 1

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