As part of the revamped distribution sector scheme, the Union Cabinet, headed by Prime Minister, has approved a Reforms-based and Result-linked, Revamped Distribution Sector Scheme. The Scheme aims to better the operational efficiencies and financial sustainability of all DISCOMs/ Power Departments through conditional financial assistance to DISCOMs for strengthening of supply infrastructure. This Scheme will exclude Private Sector DISCOMs. 

Implementation of the Scheme would be based on the action plan worked out for each state rather than a “one-size-fits-all” approach. The funds of Rs.3,03,758 crore under these Schemes would be available for the identified projects under IPDS and for the approved ongoing projects under Prime Minister’s Development Program (PMDP) for the Union Territories of J&K and Ladakh under IPDS and DDUGJY till 31 March, 2023.

The Scheme's objectives are to overall improve operational efficiencies and financial sustainabiity of DISCOMs. Under that objective there are multiple pbjectives such as reduction of AT&C losses to pan-India levels of 12-15% by 2025. 

As Artificial Intelligence's (AI) influence increases in all walks of life, the Central Government too aims to introduce it in the power sector to modernize the DISCOMs further. With the help of AI, the government aims to analyse data generated through IT/OT devices such as System Meters, prepaid Smart meters to prepare system generated energy accounting reports every month to enable DISCOMs to take informed decisions on loss reduction, demand forecasting, Time of Day (ToD) tariff, Renewable Energy (RE) Integration and for other predictive analysis. 

This would contribute a great deal towards enhancing operational efficiency and financial sustainability of the DISCOMs. Funds under the scheme would also be used for development of applications related to the use of Artificial Intelligence in the Distribution sector. This would promote the development of Startups in the Distribution Sector across the country.