119. Making state power firms financially and administratively efficient
Status: The government launched the Revamped Distribution Sector Scheme in July 2021 to improve the financial and operational health of power distribution firms by offering them result-linked financial assistance. The programme aims to reduce the firms’ AT&C losses to 12-15% and the ACS-ARR gap to zero by March 2025. AT&C losses of these firms have reduced from 22.6% in 2014 to 22.03% in 2019, and now to 15.4% in 2023. Similarly, the ACS-ARR gap has reduced from 78 paise in 2014 to 70 paise in 2019, and now to Rs 45 paise in 2023; a negative gap means a firm is profitable. The govt. also launched the Security Constraint Economic Despatch to ensure the availability of the cheapest generation at the maximum level. i ii iii iv