Direct Benefits Transfer Scheme Power Sector {StudyDhaba Mind Maps} – Recently, the Union and State governments agreed to implement the direct benefit transfer (DBT) scheme in the power sector for better targeting of electricity subsidies.

Direct Benefits Transfer Scheme Power Sector {StudyDhaba Mind Maps}


Direct Benefits Transfer Scheme Power Sector {StudyDhaba Mind Maps}

Key features

  1. Under the scheme, electricity will be provided to consumers at market rates and those eligible get the subsidy amount directly in their bank accounts.
  2. The cash payment under DBT will be equivalent to the level of payment announced by the state government for per unit of electricity consumption.
  3. The state would decide the subsidy based on average consumption data of a particular set of consumers.
  4. It is to be first launched under a pilot project and the full launch by 2019 when state discoms cleared their losses and started generating profit under UDAY.
  5. To make discoms more responsive, any disruption in electricity will be penalized after March 2019.
  6. For achieving efficiency and reduce losses, 100% metering will be done and there will be no human interface in consumer sides such as metering, billing, and collections.
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