AT&C Losses Showing Declining Trend, Steps Being Taken To Boost Power Discoms: Mos Naik

(MENAFN- KNN India) New Delhi, Dec 8 (KNN) Minister of State for New and Renewable Energy Shripad Yesso Naik informed the Rajya Sabha on Monday that the government is taking a series of targeted measures to help power distribution utilities reduce Aggregate Technical and Commercial (AT&C) losses and strengthen the electricity distribution network across the country.

Naik outlined several key initiatives, foremost among them the Revamped Distribution Sector Scheme (RDSS), designed to improve the quality and reliability of power supply through a financially sustainable and operationally efficient distribution sector.

The scheme aims to bring AT&C losses down to 12–15 per cent at the national level and reduce the ACS–ARR gap to zero.

Major Investments Under RDSS

Under RDSS, projects worth Rs 2.83 lakh crore have been sanctioned, including Rs 1.53 lakh crore for distribution infrastructure upgrades such as replacing old conductors, laying low-tension aerial bunched cables, upgrading distribution transformers and substations, and segregating agricultural feeders.

Prepaid smart metering, a central component of the scheme, is expected to further reduce AT&C losses by improving billing and collection efficiency.

The minister added that fund release under RDSS is performance-linked, with utilities required to meet targets related to AT&C losses and the ACS–ARR gap.

Additional Reforms to Strengthen Discoms

In addition to RDSS, the government has provided 0.5 per cent additional borrowing space to states conditional on implementing specific power sector reforms, introduced enhanced prudential norms for loans to state-owned power utilities, and issued rules for fuel and power purchase cost adjustments to ensure tariffs reflect prudent supply costs.

Standard operating procedures for accurate subsidy accounting and timely disbursal have also been put in place.

AT&C Losses Continue to Decline

Naik informed the House that, owing to coordinated efforts by the Centre and states, national AT&C losses have declined from 21.91 per cent in FY21 to 16.16 per cent in FY25, marking a significant improvement in the financial and operational health of distribution utilities.

(KNN Bureau)

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