Centre, states to share cost of Rs 3-trillion discom reform scheme

Umbrella scheme to include grants for schemes of IPDS, DDUGJY, and have loss-reduction targets

The new ‘reform-linked distribution scheme’, aimed at overhauling the power distribution sector and building robust supply infrastructure, will subsume all existing schemes into it, with the cost being shared between the Centre and states. 

The total capital outlay of the scheme is estimated at Rs 3.12 trillion, of which 60 per cent would be a Central grant, with the balance borne by states.

In its initial submission to the finance ministry, the Union power ministry has asked for a Central grant of Rs 1.8 trillion with a liability period till March 2022. 

“The power ministry has proposed to the expenditure