New Delhi, Feb. 2 -- The Union government has allocated Rs.18,000 crore in the budget for FY27 for the revamped distribution sector scheme (RDSS) amid a renewed push to reform the power distribution sector. This is an increase from the Rs.16,000 crore allocated for FY26, which was later revised to Rs.15,671 crore.

Mint earlier reported that the budget is expected to increase the allocation for FY27 to Rs.18,000 crore.

The higher allocation comes at a time when power distribution companies (discoms) remain under strain, saddled with cumulative debt of over Rs.7 trillion, despite multiple government efforts to bolster their financial health.

Meanwhile, a group of ministers on financial viability of discoms has proposed to incentivize the...