Karnataka gets two years to become eligible for RDSS

The Central government has given the Energy Department two years to become eligible for the Revamped Distribution Sector Scheme (RDSS) by recovering all pending arrears of electricity supply companies (escoms), Energy Minister K.J. George said on Wednesday.

When Union Minister of Power Manohar Lal Khattar was recently in Bengaluru for an event, he advised the Energy Department to prepare a road map for the recovery of pending dues. Karnataka is one of the very few States that missed out on RDSS as escoms were owed over ₹8,500 crore from various government departments at the time.

“Then, we did not even try as we knew there was no time and we were not eligible. But now, we have been given two years and we want to use the scheme as it would greatly benefit our escoms. They will get 60% subsidy (around ₹10,000 crore) for building the distribution network. The Union Minister has asked us to get the urban local bodies to impose a 2% cess to aid in the repayment of power dues,” Mr. George explained.

Eligibility for the scheme will also help consumers who install smart meters as a 15% subsidy (up to ₹900) will be provided by the Union government. It is now mandatory for all new and temporary connections to install smart meters in the State. Mr. George said that he also wants to propose to the Cabinet that smart meters be installed in all government offices.

765 kV substations to be set up

In a bid to enhance the transmission network of the State, Karnataka Power Transmission Corporation Limited (KPTCL) will set up three 765 kv substations - one each in Central, North, and South Karnataka.

“We will be one of the few States to have these substations,” said Pankaj Kumar Pandey, managing director, KPTCL.

He further said that in urban areas where getting right of way is a problem, existing transmission corridors are being used to replace conductors with high performance conductors with double or four times the capacity. High towers, which will occupy less space and leaves less footprint are also being set up to reduce transmission losses.

These are all part of a blueprint to increase the transmission capacity in the next five years.

Published - June 18, 2025 09:04 pm IST