The government on Thursday approved the Integrated Power Development Scheme (IPDS) to strengthen electricity transmission and distribution network in urban areas at an estimated cost of Rs 32,612 crore.
The Union Cabinet, which was chaired by Prime Minister Narendra Modi vetted the power ministry’s proposal on launching the IPDS, also seeks metering of distribution transformers, feeders and consumer households in urban areas and achieve IT-enabled electricity distribution and strengthening of supply network.
“The scheme will help in reduction in aggregate technical and commercial losses, establishment of IT enabled energy accounting and auditing system, improvement in billed energy based on metered consumption and improvement in collection efficiency,” according to an official statement after the Cabinet meeting.
Of the total estimated cost of Rs 32,612 crore , the government would provide budgetary support of Rs 35,354 crore.
The Cabinet also approved a dedicated project for improving the intra state transmission and distribution system for Assam, Manipur, Meghalaya, Mizoram, Tripura and Nagaland at an estimated cost of Rs 5,111.33 crore including capacity building expenditure of Rs 89 crore. It would be a centrally supported scheme with 50 per cent investment from the World Bank.
The government also approved the Rs 43,033-crore rural electrification scheme called Deendayal Upadhyaya Gram Jyoti Yojana. The scheme will replace the existing Rajiv Gandhi Grameen Vidyutikaran Yojana.