Electricity Distribution Sector Reforms in India
Social Justice & Development
- PYQs8
- Articles1
Background
This concept is critical for India's economic growth (Viksit Bharat), industrial development, rural empowerment, and achieving energy security goals. It directly relates to infrastructure development, public sector efficiency, and social justice, making it a recurring theme in UPSC examinations.
The Indian electricity sector has achieved near 100% household connectivity through schemes like DDUGJY and SAUBHAGYA. However, the distribution segment, particularly state-owned DISCOMs, faces persistent challenges including ageing infrastructure, high Aggregate Technical and Commercial (AT&C) losses, and inadequate investment, hindering the delivery of quality and reliable power.
Facts & tables
- AT&C Losses
- Exceed 20% in many states, impacting DISCOM financial health and service delivery.
- Revamped Distribution Sector Scheme (RDSS)
- Launched in 2021 for five years, allocating funds for loss reduction infrastructure and smart metering.
- Rural-Urban Divide
- Rural areas face issues with predictability of supply, impacting economic empowerment and necessitating costly backup solutions.
- Shift in Focus
- The sector is moving beyond mere access and availability to prioritize quality and reliability of supply, crucial for a modern, digital-first economy.
| Category | Allocation |
|---|---|
| Loss Reduction Infrastructure | 54% |
| Smart Metering | 46% |
| Type | Reference |
|---|---|
| Conceptual area | Public Finance & Taxation |
| Conceptual area | Welfare Schemes & Social Policies |
| Body | Role |
|---|---|
| Government of India | Formulates policies and schemes (e.g., rdss, electricity act 2003) to reform the power sector. |
| State-owned DISCOMs | Operate and manage electricity distribution, facing financial and operational challenges. |
Prelims angle
Prelims angle: Multi-statement analysis
Prelims angle: Policy measures
- DISCOMs struggle with high AT&C losses (>20%) and ageing infrastructure.
- RDSS (2021) aims to reduce losses and promote smart metering for distribution reforms.
- Focus shifting from mere access to quality and reliability of power supply.
- Rural-urban divide in power supply predictability impacts economic activity and welfare.
- Reforms are crucial for achieving Viksit Bharat and inclusive, sustainable development.
| Year | Framing tags |
|---|---|
| 2026 | Multi-statement analysis, Factual recall |
| 2023 | Multi-statement analysis, Policy measures |
| 2022 | Multi-statement analysis, Institutional roles and functions |
| 2019 | Statement-based questions, Conceptual understanding |
| 2018 | Multi-statement analysis, Policy measures |
| 2017 | Terminology-based question, Policy measures |
| 2016 | Multi-statement analysis, Factual recall |
| 2016 | Multi-statement analysis, Factual recall |
Timeline
-
Public Finance & Taxation
Conceptual area
-
Welfare Schemes & Social Policies
Conceptual area
-
Prelims 2016
Multi-statement analysis, Factual recall
-
Prelims 2016
Multi-statement analysis, Factual recall
-
Prelims 2017
Terminology-based question, Policy measures
-
Prelims 2018
Multi-statement analysis, Policy measures
-
Prelims 2019
Statement-based questions, Conceptual understanding
-
Prelims 2022
Multi-statement analysis, Institutional roles and functions
-
Prelims 2023
Multi-statement analysis, Policy measures
-
Prelims 2026
Multi-statement analysis, Factual recall
-
Beyond the 270 GW Peak Demand: Prioritising Quality and Reliability
India's electricity distribution sector faces significant challenges like high AT&C losses and ageing infrastructure, despite schemes like RDSS. Reforms are crucial for ensuring reliable, quality power, which is vital for economic development, bridging the rural-urban divide, and fostering a modern economy.
See also
Past papers
2016–2026 · 8 questions
In the news
Beyond the 270 GW Peak Demand: Prioritising Quality and Reliability
India's electricity distribution sector faces significant challenges like high AT&C losses and ageing infrastructure, despite schemes like RDSS. Reforms are crucial for ensuring reliable, quality power, which is vital for economic development, bridging the rural-urban divide, and fostering a modern economy.
Try these PYQs
Consider the following statements in relation to Janani Suraksha Yojana:
1. It is safe motherhood intervention of the State Health Departments.
2. Its objective is to reduce maternal and neonatal mortality among poor pregnant women.
3. It aims to promote institutional delivery among poor pregnant women.
4. Its objective includes providing public health facilities to sick infants up to one year of age.
How many of the statements given above are correct?
Statement 1 is incorrect: Janani Suraksha Yojana (JSY) is a 100% Centrally Sponsored Scheme under the National Health Mission (NHM). It is a central intervention implemented by states, not an intervention of the State Health Departments. Statement 2 is correct: The primary objective is to reduce maternal and neonatal mortality by encouraging safe, institutional births. Statement 3 is correct: The scheme provides a cash incentive to mothers to promote institutional delivery, particularly among those from BPL, SC, and ST households. Statement 4 is incorrect: While care for sick infants is a priority under the National Health Mission, the provision of free facilities for sick infants up to one year of age is specifically a feature of the Janani Shishu Suraksha Karyakram (JSSK) launched in 2011. JSY, launched in 2005, is primarily a conditional cash transfer scheme for delivery.
What is the purpose of ‘Vidyanjali Yojana’?
1. To enable the famous foreign educational institutions to open their campuses in India.
2. To increase the quality of education provided in government schools by taking help from the private sector and the community.
3. To encourage voluntary monetary contributions from private individuals and organizations so as to improve the infrastructure facilities for primary and secondary schools.
Select the correct answer using the code given below :
Statement 1 is incorrect. Vidyanjali Yojana is not focused on attracting foreign universities to set up campuses in India. Statement 2 is correct. Vidyanjali Yojana aims to improve government schools by leveraging resources and expertise from the private sector (retired professionals, NGOs) and the community (volunteers). Statement 3 is incorrect. While the initiative might indirectly lead to improved infrastructure due to volunteer efforts, its primary focus is not on monetary contributions for infrastructure development.
Which of the following is/are the aim/aims of "Digital India" Plan of the Government of India?
1. Formation of India's own Internet companies like China did.
2. Establish a policy framework to encourage overseas multinational corporations that collect Big Data to build their large data centres within our national geographical boundaries.
3. Connect many of our villages to the Internet and bring Wi-Fi to many of our school, public places and major tourist centres
Select the correct answer using the code given below
* Statement 1 is not correct: The formation of India’s own internet companies, similar to China’s approach, is not an aim of the Digital India programme. The initiative focuses on creating digital infrastructure, providing digital services, and promoting digital literacy — not establishing government-backed internet firms. * Statement 2 is not correct: The Digital India plan does not include any policy framework to attract foreign multinational corporations to build data centres in India. While data localisation and data centre policies have emerged later under different frameworks, they are not part of the original Digital India objectives. * Statement 3 is correct: One of the key aims of Digital India is to connect villages through broadband and to provide Wi-Fi access in schools, public places, and tourist centres. This is part of its core pillars like Broadband Highways, Public Internet Access Programme, and Early Harvest Programmes.
Which of the following statements with regard to the persons with disabilities in India is/are correct ?
1. The Rights of Persons with Disabilities Act, an Act passed by the Parliament of India in 2018, mandates reservation in education and employment, places a legal duty on Governments to ensure accessibility and non-discrimination.
2. The Sugamya Bharat Abhiyan focuses on achieving universal accessibility for Persons with Disabilities across three key domains — built infrastructure, transport systems and information and communication technology.
3. The National Divyangjan Finance and Development Corporation (NDFDC) is a public sector organisation set up by the Ministry of Corporate Affairs as a not-for-profit company to promote entrepreneurship among Persons with Disabilities (PwDs).
Select the answer using the code given below :
Statement 1 is Incorrect: The Rights of Persons with Disabilities (RPwD) Act was passed by the Parliament of India in 2016, not 2018. It aligns with the UN Convention on the Rights of Persons with Disabilities and places a legal obligation on governments to ensure non-discrimination and accessibility. It also mandates reservations for PwDs, such as increasing the quota to 4% in government employment and 5% in higher education. Statement 2 is Correct: The Sugamya Bharat Abhiyan (Accessible India Campaign) was launched in 2015 by the Department of Empowerment of Persons with Disabilities (DEPwD). It focuses on achieving universal accessibility for Persons with Disabilities across three key domains: built infrastructure (barrier-free public buildings), transport systems (accessible railways, airports, and roads), and information and communication technology (accessible government websites and digital ecosystems). Statement 3 is Incorrect: The National Divyangjan Finance and Development Corporation (NDFDC) is a Central Public Sector Undertaking registered as a not-for-profit company to provide concessional financial assistance to promote entrepreneurship, self-employment, and higher education among PwDs. However, it was set up under the aegis of the Ministry of Social Justice and Empowerment, not the Ministry of Corporate Affairs. Therefore, the correct option is B.
Regarding ‘Atal Pension Yojana’, which of the following statements is/are correct?
1. It is a minimum guaranteed pension scheme mainly targeted at unorganized sector workers
2. Only one member of a family can join the scheme
3. Some amount of pension is guaranteed for the spouse for life after the subscriber’s death.
Select the correct answer using the code given below:
Statement 1 is Correct: Atal Pension Yojana is a minimum guaranteed pension scheme primarily targeted at unorganized sector workers in India. It encourages saving for retirement through regular contributions during their working years. Statement 2 is Incorrect: There is no restriction on the number of family members who can join the Atal Pension Yojana scheme. As long as they meet the eligibility criteria (age 18-40 and savings bank account), multiple members within a family can enroll. Statement 3 is Correct: Atal Pension Yojana provides a pension benefit for the spouse after the subscriber's death. The spouse becomes the nominee and receives a pension, though the specific amount might differ depending on the chosen pension plan by the subscriber. Hence, option C is the correct answer.
Show 3 more PYQs
With reference to ‘Pradhan Mantri Fasal Bima Yojana’, consider the following statements:
1. Under this scheme, farmers will have to pay a uniform premium of two per cent for any crop they cultivate in any season of the year.
2. This scheme covers post-harvest losses arising out of cyclones and unseasonal rains.
Which of the statements given about is/are correct?
The Pradhan Mantri Fasal Bima Yojana (PMFBY) is a government-sponsored crop insurance scheme. Statement 1 is Incorrect: Under this scheme, farmers have to pay a uniform premium of 2% for all Kharif crops, 1.5% for all Rabi crops, and 5% for commercial/horticultural crops. The premium rate is not uniform for all crops in all seasons. Statement 2 is Correct: The scheme does cover post-harvest losses arising out of cyclones and unseasonal rains. Hence, option B is the correct answer.
With reference to land reforms in independent India, which one of the following statements is correct?
Land reform is a broad term: - It refers to an institutional measure directed towards altering the existing pattern of ownership, tenancy, and management of land. - It entails redistribution of the rights of ownership and/or use of land away from large landowners and in favour of cultivators with very limited or no landholdings. - At the time of independence, ownership of land was concentrated in the hands of a few. This led to the exploitation of the farmers and was a major hindrance towards the socio-economic development of the rural population. - Equal distribution of land was therefore an area of focus of Independent India's government. Laws for land ceilings were enacted in various states during the 50s & 60s, which were modified on the directives of the central government in 1972.
Consider the following statements:
1. The India Sanitation Coalition is a platform to promote sustainable sanitation and is funded by the Government of India and the World Health Organization.
2. The National Institute of Urban Affairs is an apex body of the Minister of Housing and Urban Affairs in Government
of India and provides innovative solutions to address the challenges of Urban India.
Which of the statements given above is/are correct?
Statement 1 is incorrect. The India Sanitation Coalition was launched on June 25, 2015, at FICCI, New Delhi. ISC is a multi-stakeholder platform that brings together the private sector, government, financial institutions, civil society groups, media, donors/bilateral/multilateral, experts, etc., to work in the sanitation space to drive sustainable sanitation through a partnership model. It is not funded by WHO. Statement 2 is incorrect. The National Institute of Urban Affairs (NIUA) is India’s premier urban think tank, shaping the urban narrative since its establishment in 1976, it not an apex body. It is an autonomous body under the Societies Registration Act.