Frequent outages, mounting losses, and widening gaps between the cost of supply and revenue, India’s power distributors have wrestled with these issues for years. 

For consumers, the frustrations range from unreliable service to inaccurate bills; for every state-owned Utility/DISCOM, the financial bleed is equally worrying. 

Fortunately, the Government introduced the RDSS scheme back in 2021 to combat these growing grid inefficiencies. This time-bound programme aims to modernise the distribution network, slash losses, and roll out smart metering in India at scale. 

In this article, we’ll understand how the scheme works, how it’s going, and the challenges we need to overcome.

Introducing the RDSS Scheme: Transforming India’s Distribution Sector

Launched in July 2021, under the Revamped Distribution Sector Scheme (RDSS), the Government of India has earmarked  ₹97,631 crore for prepaid smart meters and another ₹1.8 lakh crore for strengthening distribution infrastructure. Its headline goals are clear:

• Reduce nationwide AT&C losses to 12–15 per cent.
• Eliminate the ACS-ARR gap (the difference between the average cost of supply and realised revenue).
• Install 250 million smart meters by FY 2027-28, after a likely two-year extension of the original 2025-26 deadline.

Unlike earlier programmes, the RDSS scheme mandates projects on a “TOTEX (total expenditure)” basis, combining capital and operating expenditure to encourage outcome-based contracts and unlock private financing.

Components of the RDSS Scheme

The Revamped Distribution Sector Scheme (RDSS) is split into two components, namely:

• Component A – Infrastructure & Smart Metering

Central grants financial support to every qualifying Utility/DISCOM for two priorities. First comes prepaid smart metering, consumer, system, and feeder meters that sharpen billing accuracy, curb theft, and feed real-time data to head-end systems such as the Genus meter. 

Second is distribution network upgradation:  reconductoring, HVDS, and substation augmentation that reduce technical losses and prepare the grid for rising demand. 

Funds are released only after DISCOMs publish timely accounts, clear GENCO dues, install prepaid meters in government premises, and score at least 60% on a results-evaluation matrix covering financial, operational, and policy milestones.

• Component B – Training & Capacity Building

Grants cover upskilling programmes run by NPTI and other agencies, plus IT/OT enablement and change-management support, ensuring that the people operating India’s new digital grid are as future-ready as the hardware.

Challenges in Implementing the RDSS Scheme

Although the scheme promises to improve and streamline electricity distribution across the country, there are still many bottlenecks that need to be addressed for the program to succeed. This includes: 

1. Financing gaps at the state level. Many cash-strapped DISCOMs struggle to raise their share of project equity, even with a 15 per cent central grant on every smart meter.

2. Procurement bottlenecks. Competitive bidding for large AMISP packages has sometimes resulted in delays, litigation, and stressed bank guarantees.

3. Supply-chain constraints. Semiconductor shortages and logistics spikes have lengthened lead times for both import-dependent components and domestic OEMs.

4. Workforce readiness. Rolling out millions of meters demands trained crews, consumer education, and robust safety practices, areas where capacity is still ramping up.

5. Data integration. True value arrives only when meter data feeds into billing, outage-management, and analytics engines in near real time; stitching these silos together is a complex, ongoing task.

Way Forward for the Revamped Distribution Sector Scheme (RDSS)

1. Target the toughest pockets first. Roll out prepaid smart metering in high-loss feeders before expanding statewide; early wins free up cash for later phases and showcase proof of concept to every Utility/DISCOM.

2. Skill the workforce, end-to-end. Structured training classroom, field, and simulator must familiarize engineers and linemen with AMI dashboards, outage management tools, and meter analytics.

3. Bake in cybersecurity from Day 1. Secure-by-design head-end systems, encrypted firmware updates, and continuous vulnerability assessments protect consumer data and grid stability.

4. Modernise legacy IT/OT. Integrate ageing billing engines and SCADA with next-gen AMI platforms; only then can meter data flow seamlessly from pole to cloud.

Executed with these guardrails, the RDSS scheme can usher in a distribution network that is reliable, data-driven, and future-proof, moving India decisively toward a greener, more resilient power sector.

Wrapping Up

The RDSS scheme is more than a funding pipeline; it is a blueprint for a transparent, financially resilient electricity grid. 

Yes, there are many hurdles abound, from financing to execution, but the payoff is immense: reliable power for citizens and a sustainable business model for every Utility/DISCOM. 

Smart metering alone accounts for roughly one-third of the sanctioned outlay and is critical for driving behavioural change. Each Genus meter, designed in line with the most stringent standards, supports prepaid functionality, remote disconnection, and firmware-over-the-air upgrades, giving every Utility/DISCOM the tools to curb losses and offer new tariff products.

With policy resolve, private innovation, and the intelligence baked into each Genus meter, we are at the centre of a distribution sector turnaround that will definitely change the energy posture of India. 

Get in touch with us today to learn more about smart meters.