Power-packed move: Discoms surely need more of the same medicine, but under stricter monitoring

The government’s plan to extend the capital support scheme for electricity distribution utilities’ (discoms) network investments by five years from the current deadline of FY26 is sensible. The ongoing Rs 3-trillion revamped distribution sector scheme FY22-FY26 (RDSS) involves lending by PFC-REC under irrevocable state government guarantees, and the Centre’s gross budgetary support of `97,631 crore, all expected to crowd in more funds, including by equipment manufacturers. The extension could mean a doubling of the funding support in real terms. According to official data, PFC-REC has so far released loans of over Rs 1.12 trillion under the scheme, with smart-metering and other steps to slash technical losses, training and capacity-building being the most capital-intensive elements of the massive plan for systems upgrade.