**Executive Summary**
The Ministry of Power highlights key initiatives by the Government of India to reduce Aggregate Technical and Commercial (AT&C) losses in power distribution utilities. These initiatives are aimed at improving the financial sustainability and operational efficiency of the sector. As a result of these measures, AT&C losses at the national level have reduced from 21.91% in FY21 to 16.16% in FY25.
**Key Points / Main Content**
* **Revamped Distribution Sector Scheme (RDSS):**
* Objective: Improve power quality and reliability through financial sustainability and operational efficiency.
* Aims to reduce AT&C losses to 12-15% and eliminate the ACS-ARR gap nationwide.
* Projects worth Rs. 2.83 lakh crore sanctioned, including Rs. 1.53 lakh crore for distribution infrastructure.
* Involves replacing old conductors, laying LT AB cables, upgrading transformers/sub-stations, and agriculture feeder segregation.
* Fund release is linked to the performance of distribution utilities against financial parameters like AT&C losses and ACS-ARR Gap.
* Includes prepaid smart metering.
* **Financial and Regulatory Measures:**
* Additional borrowing consent of 0.5% of GSDP to State Governments, conditional on specific power sector reforms.
* Additional prudential norms for loan sanctions to state-owned power utilities, contingent on performance against prescribed conditions.
* Rules for implementation of FPPCA and cost-reflective tariff to ensure prudent cost recovery.
* Rules and Standard Operating Procedure for proper subsidy accounting and timely payment.
**Impact Analysis**
**State Governments**
* **Impact:**
* State Governments can receive additional borrowing consent (0.5% of GSDP) if they undertake specific reforms in the power sector.
* **Action Required:**
* Implement reforms in the power sector to become eligible for additional borrowing consent.
**State-Owned Power Utilities**
* **Impact:**
* Subject to additional prudential norms for sanctioning of loans.
* **Action Required:**
* Meet prescribed conditions for loan sanctions.
**Power Distribution Utilities**
* **Impact:**
* Subject to performance-linked fund release under the RDSS.
* **Action Required:**
* Improve performance against financial parameters like AT&C losses and ACS-ARR Gap.
Key Entities Referenced
Revamped Distribution Sector Scheme (RDSS): Aims to improve the quality and reliability of power distribution through a financially sustainable and operationally efficient Distribution Sector by reducing AT&C losses.
Ministry of Power: The central ministry responsible for administering the power sector and initiatives related to AT&C losses.
Ministry of Power
Key Initiatives to Bring Down AT&C Losses of
Power Distribution Utilities
AT&C Losses at the National Level Reduced from 21.91% in
FY 21 to 16.16% in FY25
प्रव तथ: 08 DEC 2025 5:02PM by PIB Delhi
Government of India has been supporting the power distribution utilities to improve their Aggregate
Technical and Commercial (AT&C) losses through various initiatives. Some of the key initiatives taken are
as under:
i. Revamped Distribution Sector Scheme (RDSS) launched with the objective of improving the
quality and reliability of power through a financially sustainable and operationally efficient
Distribution Sector. The scheme aims at bringing down the AT&C losses to pan-India level of
12-15% and ACS-ARR gap to zero. Under the Scheme, projects worth Rs. 2.83 lakh crore
have been sanctioned. These involve distribution infrastructure works worth Rs. 1.53 lakh
crore which include replacement of old/frayed conductors, laying Low Tension Aerial
Bunched (LT AB) cables, and upgradation/augmentation of Distribution Transformers
(DT)/Sub-stations, agriculture feeder segregartion etc. The fund release under the scheme has
been linked to performance of distribution utilities against various financial parameters, the
prominent among them being AT&C losses and ACS-ARR Gap. Execution of these works
would also help improve quality of supply of power. Prepaid smart metering is also one of
the critical interventions envisaged under RDSS, which would help in improving AT&C
losses.
ii. Additional Borrowing consent of 0.5% of GSDP to State Governments, which is conditional
on them undertaking specific reforms in the power sector.
iii. Additional Prudential Norms for sanctioning of loans to State owned power utilities
contingent on the performance of power distribution utilities against prescribed conditions.
iv. Rules for implementation of FPPCA and cost reflective tariff so as to ensure that all prudent
cost for supply of electricity are passed through.
v. Rules and Standard Operating Procedure issued for proper subsidy accounting and their
timely payment.
With collective effort of Centre & States/ UTs and the reform measures undertaken, the AT&C loss of
distribution utilities at the national level has reduced from 21.91% in FY 21 to 16.16% in FY25.
This Information was given by the Minister of State for Power, Shri Shripad Yesso Naik, in a written reply
in the Rajya Sabha today.
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इस वज्ञ को इन भाषाओ ंम पढ़: Urdu , ही