Executive Summary:
The Ministry of Power addressed the Lok Sabha regarding smart meter installation targets. As of June 2025, 2.45 crore smart meters have been installed out of 20.33 crore sanctioned under the Revamped Distribution Sector Scheme (RDSS). The scheme, with a Gross Budgetary Support (GBS) of Rs. 24,173 Cr, aims to reduce Aggregate Technical and Commercial (ATC) losses and complete meter installation by March 2028.
Key Points / Main Content:
Smart Metering and RDSS:
* Smart metering works worth Rs. 1,30,671 Cr have been sanctioned under RDSS, including a GBS of Rs. 24,173 Cr from the Government of India.
* 20.33 crore smart meters have been sanctioned under RDSS, with 2.45 crore installed to date.
* Installation of all sanctioned smart meters is targeted for completion by March 2028.
ATC Loss Reduction Initiatives:
* The RDSS aims to improve power quality and reliability, targeting ATC losses of 12-15% and zero ACS/ARR gap pan-India.
* Projects worth Rs. 2.82 lakh crore have been sanctioned under RDSS, including Rs. 1.51 lakh crore for distribution infrastructure upgrades.
* Fund release under RDSS is linked to the performance of distribution utilities against financial parameters, including ATC losses and ACS/ARR gap.
* Other initiatives to reduce ATC losses include additional borrowing space for states undertaking power sector reforms, additional prudential norms for loans to state-owned power utilities, implementation of FPPCA rules and cost-reflective tariffs, and rules for proper subsidy accounting.
* National ATC losses have decreased from 21.91% in FY21 to 16.12% in FY24 due to collective efforts and reform measures.
Impact Analysis:
Power Distribution Utilities:
* Impact: Required to improve performance against financial parameters (ATC losses and ACS/ARR gap) to receive funding under RDSS. Will benefit from infrastructure upgrades and smart meter implementation.
* Action Required: Execute sanctioned projects, meet performance targets for ATC loss reduction and ACS/ARR gap, and implement smart metering solutions.
State Governments:
* Impact: Can access additional borrowing space by undertaking power sector reforms.
* Action Required: Implement power sector reforms to qualify for additional borrowing space.
Consumers:
* Impact: Improved quality and reliability of power supply through infrastructure upgrades and reduced ATC losses.
* Action Required: No direct action required.
Government of India:
* Impact: Oversight of RDSS implementation, monitoring of ATC loss reduction progress, and provision of financial support.
* Action Required: Continue to support power distribution utilities through RDSS and other initiatives, and monitor performance against targets.
Key Entities Referenced
Revamped Distribution Sector Scheme (RDSS): A Government of India scheme aimed at improving the quality and reliability of power distribution through financial sustainability and operational efficiency.
Aggregate Technical and Commercial (ATC) losses: The total loss of electricity in the distribution system, including technical losses and commercial losses (theft and non-payment).
Gross Budgetary Support (GBS): Financial assistance provided by the Government of India for the Revamped Distribution Sector Scheme.
SHRI VISHNU DAYAL RAM: Member of LOK SABHA who asked the question related to smart meters.
SHRI DARSHAN SINGH CHOUDHARY: Member of LOK SABHA who asked the question related to smart meters.
March 2028: The deadline for the installation of sanctioned smart meters under the RDSS scheme.
Low Tension Aerial Bunched LT AB cables: Infrastructure work to improve power distribution quality.
ACSARR Gap: Difference between Average Cost of Supply and Average Revenue Realized.
GOVERNMENT OF INDIA
MINISTRY OF POWER
LOK SABHA
UNSTARRED QUESTION NO.1951
ANSWERED ON 31.07.2025
TARGETS FOR INSTALLATION OF SMART METERS
1951. SHRI VISHNU DAYAL RAM:
SHRI DARSHAN SINGH CHOUDHARY:
Will the Minister of POWER
be pleased to state:
(a) the total outlay and estimated Government budgetary support during the
last five years under the scheme meant for the purpose of smart meters;
(b) the number of smart meters installed and sanctioned till June 2025;
(c) the targeted number of smart meters to be installed by 2025; and
(d) whether any steps have been taken to reduce Aggregate Technical and
Commercial (AT&C) losses and if so, the details thereof?
A N S W E R
THE MINISTER OF STATE IN THE MINISTRY OF POWER
(SHRI SHRIPAD NAIK)
(a) : Under Revamped Distribution Sector Scheme (RDSS) smart metering works
worth Rs. 1,30,671 Cr with Gross Budgetary Support (GBS) of Rs. 24,173 Cr from
Government of India have been sanctioned.
(b) & (c) : Till date, a total of 20.33 crore smart meters have been sanctioned under
RDSS, out of which 2.45 crore smart meters have been installed. The installation
of sanctioned smart meters is to be completed by the end of the scheme period
(March’ 2028).
(d) : Government of India (GoI) 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:
……..2.- 2 -
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. 2.82 lakh crore
have been sanctioned. These involve distribution infrastructure works
worth Rs. 1.51 lakh crore which include replacement of bare conductors
with covered conductors, laying Low Tension Aerial Bunched (LT AB)
cables, and upgradation/ augmentation of Distribution Transformers (DT)/
Sub-stations, 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 space 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 which would be contingent to 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 FY21 to 16.12% in FY24.
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