Contemporary distributions are now going to underground their overhead distribution lines due to techno-social reasons. Reliability and loss reduction are the two prime objectives for distribution system operation. Since failure rates of ungrounded cables are the function of Joules heating besides their physical lengths, the reliability evaluation of undergrounded distribution systems needs to be reviewed. This paper suggested a suitable modification in existing reliability indices in order to make them more appropriate for underground distribution systems. A multi-objective network reconfiguration problem is formulated to enhance the reliability and performance of distribution systems while duly addressing the variability and uncertainty in load demand and power generation from renewables. The application results on a standard test bench shift the paradigm of the well-known conflicting nature of reliability and network performance indices defined for overhead distribution systems.