Based on the stories that have come out so far, the following aspects of the proposed new scheme to clear India’s discom mess have emerged. Called ADITYA (Atal Distribution System Improvement Yojana), the new scheme could be announced as early as February 1, with the union budget presentation.
First, the scheme will reward performing discoms with central grants, with a total corpus of Rs 1.10 lakh crores available . That’s close to $15 billion dollars. Secondly, discoms that are unable to meet targets for improvement will have to privatise, to cut the risk of draining future taxpayer funds on them.
Finally, the big expectation from the scheme would be a massive overhaul of the distribution network, from network overhaul, to expansion to importantly, the seeding of smart meters across the systems consumers, including its 250 million households.