Utilization of PSDF The scheme has been operationalized with the issuance of the Guidelines/Procedure for Disbursement of Fund from Power System Development Fund (PSDF) on 18th September, 2014. The funds would be provided as grants to the States/UTs as per these guidelines. According to the Scheme, PSDF will be utilized for the following purposes: (i) Creating necessary transmission system of strategic importance based on operational feedback by Load Dispatch Centers for relieving congestion in Inter-State Transmission Systems (ISTS) and intra-state system which are incidental to the ISTS. (ii) Installation of shunt capacitors, series compensators and other reactive energy generators for improvement of voltage profile in the grid. (iii) Installation of standard and special protection schemes, pilot and demonstrative projects, and for setting right discrepancies identified in protection audits on regional basis. (iv) Renovation and Modernization (R&M) of transmission and distribution systems for relieving congestion. (v) Any other scheme/project in furtherance of the above objectives, such as, conducting technical studies and capacity building, etc. This was stated by Sh. Piyush Goyal, Minister of State (IC) for Power, Coal & New and Renewable Energy in a written reply to a question in the Lok Sabha today. RM/RS-
