Restructured Accelerated Power Development and Reforms Programme(R-APDRP)

The Restructured Accelerated Power Development and Reforms Programme (R-APDRP) is a flagship initiative launched by the Government of India in 2008 under the Ministry of Power to strengthen and modernise the power distribution sector. The programme aims to reduce Aggregate Technical and Commercial (AT&C) losses, improve the reliability and quality of power supply, and enhance the financial sustainability of power utilities. It builds upon the earlier Accelerated Power Development and Reforms Programme (APDRP) introduced in 2002, incorporating structural and technological improvements to address persistent inefficiencies in power distribution.

Background and Evolution

India’s power sector has historically faced significant challenges, including high transmission and distribution losses, inadequate infrastructure, and poor billing efficiency. To address these, the APDRP was launched during the Tenth Five-Year Plan (2002–2007) to assist state utilities in upgrading distribution networks and improving performance. However, despite substantial investments, results were limited due to weak implementation and lack of accountability.
Recognising these shortcomings, the government restructured the programme in 2008, resulting in the R-APDRP. The new scheme introduced stricter performance-linked incentives, mandatory use of information technology (IT), and robust monitoring mechanisms. The objective was to create a transparent and accountable power distribution system through technology-driven reforms.

Objectives of the R-APDRP

The R-APDRP was designed with clear and measurable goals:

• Reduction of AT&C losses to below 15% in project areas.
• Strengthening and upgrading sub-transmission and distribution networks to improve reliability and quality of power supply.
• Establishment of reliable and automated systems for collection of accurate baseline data.
• Improvement in customer service, including accurate metering, timely billing, and grievance redressal.
• Financial turnaround of distribution utilities through efficiency gains and enhanced revenue realisation.

These objectives collectively aimed to transform the distribution sector into a commercially viable and consumer-responsive segment.

Components of the Programme

The R-APDRP was structured into two main parts—Part A and Part B, with an additional provision for enabling activities.

1. Part A – IT Applications and Baseline Data:This component focused on establishing accurate, reliable information systems and consumer databases. Activities included:
   • Development of IT-based energy accounting and auditing systems.
   • GIS (Geographical Information System) mapping of distribution assets.
   • Computerisation of billing, collection, and customer care functions.
   • Setting up of Data Centres and Disaster Recovery Centres.
   • Establishment of Supervisory Control and Data Acquisition (SCADA) systems in towns with a population of over 4 lakh and annual energy input exceeding 350 MU.

   The main objective of Part A was to create a transparent data environment that could form the foundation for further reforms and investments.

2. Part B – Strengthening of Distribution Networks:This component involved physical upgradation and strengthening of the sub-transmission and distribution infrastructure to reduce technical losses and improve reliability. Activities included:
   • Renovation and modernisation of existing substations and lines.
   • Installation of new transformers, conductors, and feeder separation.
   • Implementation of high-voltage distribution systems (HVDS).
   • Capacitor installation to improve power factor.
   • Metering of feeders, distribution transformers, and consumers.

   Funding for Part B projects was contingent upon the successful completion and verification of Part A baseline data.

3. Enabling Activities:These included capacity building, project management support, consumer indexing, and training of utility staff to ensure efficient implementation and maintenance of the systems created.

Funding Pattern and Implementation Mechanism

The R-APDRP was implemented through state power distribution utilities (DISCOMs), with financial assistance from the Government of India and loans from agencies such as the Power Finance Corporation (PFC), which acted as the nodal agency for the scheme.

• Part A projects were fully funded as loans, convertible into grants upon successful establishment of the IT system and verification of baseline data by independent agencies.
• Part B projects were initially sanctioned as loans, of which 50% could be converted into grants if the utility achieved AT&C loss reduction below 15% (or 12% for certain urban areas) within a stipulated timeframe.

This incentive-linked funding mechanism aimed to promote accountability and performance-based outcomes rather than input-based investments.

Role of Key Institutions

• Ministry of Power (MoP): Provided policy direction, coordination, and approval of projects.
• Power Finance Corporation (PFC): Functioned as the nodal agency, responsible for appraisal, fund disbursement, monitoring, and evaluation.
• Distribution Companies (DISCOMs): Implemented the projects, maintained data systems, and ensured compliance with performance benchmarks.
• Independent Evaluation Agencies (IEAs): Conducted third-party verification of project performance and data accuracy.

This institutional arrangement ensured greater transparency and credibility in the implementation process.

Outcomes and Achievements

The R-APDRP significantly contributed to the modernisation of India’s power distribution system, particularly in urban areas. Key achievements include:

• Implementation of IT-enabled systems in more than 1,400 towns across India.
• Establishment of baseline data and consumer indexing for millions of consumers.
• Deployment of SCADA systems in major cities for real-time monitoring of power supply.
• Improvement in billing efficiency and revenue collection through accurate metering and automated billing.
• Strengthening of urban power distribution infrastructure, leading to reduced outages and improved service reliability.

Several states, including Gujarat, Andhra Pradesh, and Maharashtra, reported substantial declines in AT&C losses as a result of R-APDRP interventions.

Challenges and Limitations

Despite its achievements, the R-APDRP faced several implementation challenges:

• Delays in project execution due to procurement, coordination, and technical complexities.
• Inadequate capacity of some state utilities to handle advanced IT systems.
• Inconsistent data quality and difficulties in establishing baseline loss levels.
• Limited coverage of rural areas, which continued to experience high losses.
• Dependence on third-party agencies, which sometimes led to delays in verification and fund conversion.

Moreover, sustainability of the IT systems and the need for continuous maintenance posed ongoing financial and operational challenges.

Transition to Integrated Power Development Scheme (IPDS)

In 2014, the Government of India launched the Integrated Power Development Scheme (IPDS), merging the R-APDRP with other distribution strengthening initiatives. The IPDS retained the core objectives of R-APDRP—such as IT enablement, metering, and reduction of AT&C losses—while extending its scope to include:

• Strengthening of sub-transmission and distribution networks in urban areas.
• Provision of smart metering and underground cabling.
• Integration of renewable energy sources into urban grids.