Highlights of the Integrated Power Development Scheme launched
by the Ministry of Power, in order to provide the necessary impetus
to the Indian power sector and to boost the power distribution
Efficient distribution of electricity is one of the key elements
which affect the power sector. In India, efficient management of
the power distribution networks is one of the key challenges faced
by the power sector today.
In the given backdrop, an efficient sub-transmission and
distribution network together with necessary metering arrangements
is the need of the hour for providing the necessary impetus to the
Indian power sector.
The Integrated Power Development Scheme (IPDS) which was
approved by the Union Cabinet on November 20, 2014 has been
sanctioned for launch/
implementation by the President of India and the same has been
notified by the Ministry of Power, Government of India vide its
Office Memorandum dated December 3, 2014. The IPDS is aimed to
extend financial assistance against capital expenditure and to
address the gaps in sub-transmission, distribution networks and
metering in urban and semi-urban areas.
The primary objectives of the IPDS scheme are:
1. Strengthening of the sub-transmission and distribution
network in urban areas;
2. Metering of distribution transformers /feeders / consumers in
3. IT enablement of the distribution sector and strengthening of
the distribution network as per the Cabinet Committee on Economic
Affair‟s (CCEA) approval dated June 6, 2013 for completion of
targets laid down under the Restructured Accelerated Power
Development and Reforms Programme (R-APDRP) for the 12th and 13th
Five Year Plans, by carrying forward the approved outlay for RAPDRP
4. Completion of optical fibre missing links to connect all the
33KV or 66KV grid sub-stations under the establishment of the
National Optic Fibre Network;
5. Establishment of the National Power Data Hub at CEA;
6. Training and capacity building; and
7. Provisioning of solar panels.
The ongoing scheme of R-APDRP will get subsumed in the new
scheme of IPDS and will be continued as a separate component of
IPDS for IT enablement of the distribution sector and strengthening
of the distribution network in urban areas and the said scheme is
expected to reduce transmission losses and also improve the
distribution networks, which is a key element for the power
Power Finance Corporation Limited (PFC) shall be the nodal
agency for operationalization and implementation of the IPDS scheme
under the overall guidance of the Ministry of Power.
Suitable tripartite agreements shall be executed between PFC as
the nodal agency on behalf of the Ministry of Power, the State
Government and the distribution companies (DISCOMS) to ensure
implementation of the IPDS scheme in accordance with the guidelines
prescribed under the scheme.
The estimated cost of implementing the IPDS scheme with the
components of strengthening of sub-transmission and distribution
networks, including metering of consumers in the urban areas is Rs.
32,612 Crore which includes the budgetary support from the
Government of India of Rs. 25,354 Crore over the entire
The IPDS scheme is aimed to strengthen the sub-transmission and
distribution systems, including provisioning of solar panels,
metering of distribution transformers / feeders / consumers in
urban areas, and IT enablement of the power distribution sector.
The projects undertaken under the IPDS scheme shall be implemented
on turn-key/ partial turnkey or departmental basis, in line with
Part-B of the R-APDRP.
It is pertinent to note that all DISCOMS including private
sector DISCOMS and state power departments shall be eligible for
financial assistance under the IPDS scheme. However, the DISCOMS
will have to setup dedicated teams for implementation of the
projects taken up under the IPDS scheme, including necessary
manpower and requisite infrastructure, logistics etc., for the
purpose of implementation and monitoring of the projects taken up
under the IPDS scheme.
The process of sanctioning of projects to be taken up under the
IPDS scheme is scheduled to start with immediate effect.
However, it is must be noted that the IPDS specifically sets out
that the projects taken up under the IPDS scheme are required to be
completed within 24 (twenty four) months from the date of issue of
the Letter of Award.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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