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Home / IAS Preparation / Government Schemes of India / Integrated Power Development Scheme

Integrated Power Development Scheme(IPDS) - Eligibility, Facts & Government Initiatives!

Last Updated on Feb 05, 2024
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IPDS full form is Integrated Power Development Scheme. It is a flagship scheme of the Ministry of Power launched in 2014. It aims to strengthen and improve the power transmission and submission networks. As the power sector of India is one of the most diversified in the world, this scheme aims to tackle the challenges and improve the overall functioning of India’s power sector. The scheme further accommodates features such as underground cabling, smart metering solutions, and the integration of solar panels on government buildings, signaling a commitment to sustainable and technologically progressive power development.

This is an important topic from the perspective of the upcoming UPSC Exam, and aspirants should try to understand the features, objectives, and implementation related to the IPDS. 

Integrated Power Development Scheme

Integrated Power Development Scheme is important for GS paper 1 of the UPSC prelim exam and GS paper 2 and GS paper 3 of the Mains exam. For more conceptual clarity, aspirants can join UPSC CSE Coaching with India’s top educators. Students can clear the exam easily.

Latest news about IPDS Scheme
  • Recently, as a part of Azadi ka Amrit Mahotsava, the government launched a 50 kWp solar rooftop in Solan, Himachal Pradesh, on 19th June 2021 under the Integrated Power Development Scheme (IPDS) of the Union Ministry of Power, Government of India.
  • The 50 kWp Rooftop solar plant has been installed at the HPSEBL circle office in Solan, Himachal Pradesh. It will produce 165 Kwh of electricity on the daily basis.
  • This project further reinforces the government's ‘Go Green Initiative’ built under the Urban Distribution Scheme.

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What is Integrated Power Development Scheme (IPDS)?

The Union Ministry of Power launched the Integrated Power Development Scheme (IPDS) in December 2014 to supply power to consumers 24 x 7 to strengthen and enhance India's power sector. The IPDS scheme will be implemented and operationalized by the Power Finance Corporation (PFC) under the Ministry of Power.

Read about the Monetary Policy Committee, which was recently in the news.

Objective of Integrated Power Development Scheme

The broad objectives of the Integrated Power Development Scheme (IPDS) are:

  • Power supply to the consumers 24 X 7.
  •  The Ministry of Power will finalize reducing AT&C losses in consultation with the States.
  •  Access to power is to be provided to all households.

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Eligibility of IPDS Scheme

All discoms (Power Distribution Companies) are eligible for financial assistance under the IPDS scheme.

Components of Integrated Power Development Scheme

The components of the Integrated Power Development Scheme (IPDS) are listed below:

  • It is strengthening the sub-transmission and distribution networks across the urban areas in India.
  • Metering to be fitted across the distribution transformers/ feeders/consumers in the urban areas.
  • The power distribution sectors in India are to be strengthened under the Restructured Accelerated Power Development Programme (R-APDRP).
  • The entire power distribution sector under the IPDS scheme is to be Enabled.
  • Integrated Power Development Scheme (IPDS) includes ERP, i.e., Enterprises Resource Planning scheme and IT enablement of urban towns.

Candidates can read an article on Urbanization in India here!

Funding Pattern under Integrated Power Development Scheme (IPDS)

The total outlay of the IPDS scheme is Rs. 32612 crore. The funding patterns of the IPDS scheme are

  • Government of India (GoI): 60% for all the states except special category states( All North Eastern States including Sikkim, J&K, Himachal Pradesh, and Uttrakhand), where GoI will fund 85%.
  • Additional Grants: 15% will be linked to the achievement of the milestone of IPDS, except for 5% for special category states.

Study the Article Mission Shakti here!

About PFC

Power Finance Corporation (PFC) was established in 1986 and is the largest infrastructure finance company under the Ministry of Power. It is among the 11th public sector enterprises to be given Maharatna status in India.

Organogram of IPDS Scheme

Power Finance Corporation is the nodal agency involved in the implementation of IPDS. The salient features of the Integrated Power Development Scheme (IPDS) organogram are given below.

  •  IPDS units will work under the guidance and supervision of CMD (Power Finance Corporation) Sh. Ravinder Singh Dhillon and the Board of Directors of PFC.
  • The IPDS unit headed by ED (IPDS) will be supported by a team of 30 executives, mainly composed of domain experts.
  • The team will be divided into several functional domains like Project Monitoring, Funding, Technical coordination, etc., and each member will work as per their domain expertise.
  • Additionally, each officer will be designated State Nodal Officer to monitor, coordinate, facilitate, and handhold the State/ utilities on various projects in the Urban Distribution Sector.

Read an article on Base Erosion and Profit shifting important for the upcoming UPSC exam.

Achievements of the Integrated Power Development Scheme
  • Infrastructure Development: This includes the establishment of new substations, installation of transformers, setting up underground cabling systems, and upgrading of power lines and distribution networks.
  • Reduction in Aggregate Technical and Commercial Losses: Through measures such as installing smart meters, implementing energy auditing, and adopting advanced metering infrastructure, AT&C losses have been significantly reduced in several urban areas.
  • Improved Operational Efficiency: The scheme emphasizes improving the operational efficiency of power distribution companies (DISCOMs). It is done by computerizing billing and metering processes and implementing energy accounting and auditing systems.
  • Enhanced Reliability and Quality of Power Supply: Upgradation of sub-transmission and distribution networks, installation of automated systems for fault detection, and quick power restoration. It has resulted in improved reliability and quality of electricity supply.
  • Integration of Renewable Energy: This includes the installation of solar panels on government buildings, grid-connected rooftop solar projects, and promoting energy-efficient practices.
  • Strengthening of DISCOMs: The IPDS has played a significant role in strengthening the financial and operational capabilities of DISCOMs.

Power Sector in India
  • The Ministry of Power started functioning in India on 2 July 1992; earlier, it was known as the Ministry of Energy Resources.
  •  India's power sector is one of the most diversified in the world. Electricity is a concurrent subject, entry 38 List III of the Seventh Schedule of the Constitution of India, i.e., states and unions can make laws on it.
  • The Union Ministry of Power is responsible for developing and managing electrical energy in the country. It implements & administers the Electricity Act of 2003 and the Energy Conservation Act of 2001, as may be necessary occasionally, in conformity with the Government’s policy objective.
  • The government has permitted 100% Foreign Direct Investment (FDI) through automatic routes in India's power sector.

Related Government Initiatives

Pradhan Mantri Sahaj Bijli Har Ghar Yojana (Saubhagya): This initiative was launched to ensure the electrification of the entire household in rural and urban areas.

Deendayal Upadhyaya Gram Jyoti Yojana (DDUGJY): This scheme was launched for rural electrification, separating agriculture from non-agriculture feeders, and augmenting & strengthening sub-transmission and distribution infrastructure in rural areas.

Ujwal Discom Assurance Yojana (UDAY): The UDAY scheme was launched for the operational and financial turnaround of Discoms. UDAY scheme has “4E’s” in the revised tariff policy that includes Electricity for all, Efficiency, Environment for a sustainable future, and Ease of Doing Business for attracting foreign investments.

Learn an important topic for UPSC National Mission for Sustaining the Himalayan Ecosystem (NMSHE).

Way Forward

The Integrated Power Development Scheme (IPDS) is designed to ensure electricity for all and make India’s Power sector at par with global standards. Rural India, deprived of electricity for so long, is included under the IPDS scheme with the vision of inclusivity.

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Integrated Power Development Scheme FAQs

Integrated Power Development Scheme (IPDS) is a scheme launched by the Ministry of Power on 3rd December 2014 in order to strengthen and enhance the power transmissions across India.

Every household in India will benefit from the IPDS scheme.

The target of the Integrated Power Development Scheme (IPDS) scheme is to supply 24 x 7 power supplies to the consumers.

The Restructured Accelerated Power Development and Reforms Programmes (R-APDRP) was launched in July 2008 with emphasis on baseline data, reduction of AT&C losses up to 15%, fixation of accountability, and upgradation of sub-transmission and distribution networks.

The total outlay of the Integrated Power Development Scheme (IPDS) is Rs. 32612 crores.

Integrated Power Development Scheme (IPDS) was launched on 3rd December 2014. It is a flagship scheme of the Ministry of Power, Government of India.

Integrated Power Development Scheme (IPDS) was launched on 3rd December 2014. It is a flagship scheme of the Ministry of Power, Government of India.
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