Cabinet okays Rs 3 trn outlay for new power reform scheme for five years

Assistance would be based on discoms meeting pre-qualifying criteria and achieving benchmarks.

The Union Cabinet Committee of Economic Affairs (CCEA) gave its nod to a new scheme for revival of the power distribution sector in India. This is the second reform scheme for power distribution companies (discoms) announced by the BJP government, a year after the ambitious UDAY scheme concluded.

It would have an outlay of Rs 3 trillion for five years to FY26 with a gross budgetary support of Rs 97,631 crore. Union finance minister Nirmala Sitharaman had announced the scheme while presenting in the Budget in February this year. Most of the targets under UDAY earlier slated to be met