The Government has approved the scheme for operationisation of Power System Development Fund (PSDF) in January, 2014. As on 31.12.2013, about Rs.6300 crore was available with this Fund.
The criteria and purpose for which the PSDF will be utilized are as follows:
1. Creating necessary transmission systems of strategic importance based on operational feedback by Load Dispatch Centers for relieving congestion in Inter-State Transmission Systems (ISTS) and Intra-State System which are incidental to the ISTS.
2. Installation of shunt capacitors, series compensators and other reactive energy generators for improvement of voltage profile in the grid.
3. Installation of standard and special protection schemes, pilot and demonstrative projects, and for setting right the discrepancies identified in protection audits on regional basis.
4. Renovation and Modernization (R&M) of transmission and distribution systems for relieving congestion.
5. Any other scheme / project in furtherance of the above objectives, such as, conducting technical studies and capacity building etc.
Projects proposed by distribution utilities in the above areas that have a bearing on grid safety and security, provided these are not covered under any other scheme of the Government of India will be eligible under this scheme. Private Sector projects will not be eligible for assistance from the Fund.
This information was given by Shri Jyotiraditya Scindia, Minister of State for Power (I/C) in a written reply to Lok Sabha.
