**Summary:**
As of July 15, 2025, under the Revamped Distribution Sector Scheme (RDSS), the Ministry of Power has sanctioned 20.33 crore smart meters across 28 States/Union Territories, with 2.41 crore smart meters installed. Gujarat has been sanctioned 1.67 crore smart meters, with 20.94 lakh installations completed. The RDSS aims to improve the quality and reliability of power supply through a financially sustainable and operationally efficient distribution sector.
Smart meters enhance billing efficiency by providing real-time data, automating data collection, minimizing human error, and helping prevent electricity theft. While Gujarat's smart meter installations are in the initial phase, improvements in operational parameters are expected upon completion of area saturation.
The Government of India supports state distribution utilities through various initiatives, including linking RDSS fund releases to performance improvements against parameters like the Average Cost of Supply and Average Revenue Realized (ACS-ARR) gap and Aggregate Technical and Commercial (ATC) losses. States can also access additional borrowing space (0.5% of GSDP) by implementing loss reduction measures. Furthermore, prudential norms for loans to state-owned power utilities are linked to the performance of power distribution utilities. Implementation of Fuel and Power Purchase Cost Adjustment (FPPCA) rules and cost-reflective tariffs are mandated to ensure the timely realization of electricity supply costs.
Nationally, reform measures have led to a reduction in ATC losses from 21.91% in FY21 to 16.12% in FY24, and a decrease in the ACS-ARR gap from Rs 0.69/kWh in FY21 to Rs 0.19/kWh in FY24.
This information was provided by the Minister of State for Power, Shri Shripad Yesso Naik, in a written reply in the Lok Sabha on July 24, 2025. Release ID: 2147902.
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 and operational efficiency.
Ministry of Power: The Indian government ministry responsible for the development of electrical power.
Gujarat: A state in India where smart meter installations are in the initial implementation phase.
Lok Sabha: The lower house of the Parliament of India, where information regarding the scheme was presented.
Shri Shripad Yesso Naik: The Minister of State for Power who provided information in a written reply.
Aggregate Technical Commercial ATC losses: A key metric for evaluating the performance of distribution utilities, representing the total losses in the power distribution system.
ACSARR Gap: The difference between the average cost of supply and the average revenue realized by distribution utilities.
Fuel and Power Purchase Cost Adjustment FPPCA: A mechanism for adjusting tariffs to reflect changes in fuel and power purchase costs.
Ministry of Power
Smart Meters Installed Under RDSS
Posted On: 24 JUL 2025 6:15PM by PIB Delhi
Under the Revamped Distribution Sector Scheme (RDSS), 20.33 crore smart meters have been sanctioned in
28 States/ UTs, out of which 2.41 crore smart meters have been installed as on 15.07.2025. For the state of
Gujarat, 1.67 crore smart meters have been sanctioned under RDSS, out of which 20.94 lakh smart meters
have been installed as on 15.07.2025.
Smart meters help the distribution utilities in improving their billing efficiency as below:
i. Provide real-time data, eliminating the need for estimated readings, which can lead to billing
inaccuracies.
ii. Automated data collection process minimizes human error associated with manual meter reading
and billing.
iii. Help identify and prevent electricity theft, ensuring that utilities recover revenue for all energy
consumed.
As reported by the utilities of the State of Gujarat, the smart meter installations are currently in its initial
implementation phase and complete saturation of divisions are under progress. The improvement in the
operational parameters of the Gujarat utilities can be assessed once the saturation in specific areas is complete.
Government of India (GoI) has been supporting the States/ distribution utilities to improve their performance
through various initiatives. Some of the key initiatives taken are as under:
i. Revamped Distribution Sector Scheme (RDSS) was launched with the objective of improving the
quality and reliability of power through a financially sustainable and operationally efficient
Distribution Sector. The release of funds under the scheme is linked to States/ distribution utilities
taking necessary measures for improving their performance against specified parameters including
the Gap between average cost of supply and average revenue realized i.e. ACS-ARR Gap and the
Aggregate Technical & Commercial (AT&C) losses.
ii. Allowing additional borrowing space of 0.5% of GSDP to the State if the distribution utility
implements loss reduction measures.
iii. Additional Prudential Norms have been specified for sanctioning of loans to State owned Power
Utilities which is contingent on performance of Power Distribution Utilities against prescribed
parameters.
iv. Rules for implementation of Fuel and Power Purchase Cost Adjustment (FPPCA) and cost
reflective tariff to ensure all prudent costs for supply of electricity are passed through and are
timely realised.
Above reform measures are to be implemented by States/ distribution utilities as a whole including Tier-II and
Tier-III towns falling under the utility area. As a result of reform measures undertaken, the AT&C losses of
distribution utilities at the national level has reduced from 21.91% in FY21 to 16.12% in FY24 and ACS-
ARR Gap from Rs 0.69/ kWh in FY21 to Rs 0.19/ kWh in FY24.
This information was given by the Minister of State for Power, Shri Shripad Yesso Naik, in a written reply in
the Lok Sabha today.
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SK(Release ID: 2147902)