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The Union Cabinet on Wednesday approved a reforms-based and results-linked revamped distribution sector scheme with an outlay of Rs 3.03 lakh crore.

The scheme seeks to improve the operational efficiencies and financial sustainability of all discoms and power departments excluding private sector discoms by providing conditional financial assistance to them for strengthening of supply infrastructure.

The assistance will be based on meeting pre-qualifying criteria as well as upon achievement of basic minimum benchmarks by the discom evaluated on the basis of agreed evaluation framework tied to financial improvements. Implementation of the scheme would be based on the action plan worked out for each state rather than a "one-size-fits-all" approach, said an official statement.

It is proposed that the currently ongoing approved projects under the Schemes of IPDS, DDUGJY along with PMDP-2015 for the Union Territories of Jammu & Kashmir (J&K) and Ladakh would be subsumed in this scheme.

The funds under these schemes would be available for the identified projects under IPDS and for the approved ongoing projects under Prime Minister's Development Programme (PMDP) for the Union Territories of J&K and Ladakh under IPDS and DDUGJY till 31 March, 2023.

The scheme would be available till the year 2025-26. REC and PFC have been nominated as nodal agencies for facilitating implementation of the scheme.