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India UDAY Policy is Shining Silently

uday
India UDAY Policy is Shining Silently

WORK LIFE

India UDAY Policy is Shining Silently

Honourable Prime Minister, Narendra Modi started his term as 15th Prime Minister of India on 26th May, 2014. One out of many challenges in front of him was growing debts of poorly managed state DISCOMS, which were facing financial troubles and ATC (Aggregate Technical & Commercial Distribution) losses. The NDA government, like their predecessor had option to either bailout financial scheme or to get rid out of the problem. PM Narendra Modi led NDA decided to opt for the tougher task of taking down bull by horn permanently.

Shri Narendra Modi

The Ujwal DISCOM Assurance Yojana (UDAY) was introduced by then honourable power minister, Piyush Goyal, focused towards operational and financial turnaround of state-owned Power Distribution Companies (DISCOMS), scheme was optional for states to join. Since the introduction, UDAY scheme has

delivered constructive results, aggregate losses of thirty-two associated state’s and union territory’s state DISCOMS are down by 70{e7dc6fb6a411593559bed1d9924d8030d60fc3f24c9293f7c98c249df74a0c2f} amounting  to INR value of 1.73 lakh crore in 2017-18.  As per the latest information available on UDAY official portal, 86.29{e7dc6fb6a411593559bed1d9924d8030d60fc3f24c9293f7c98c249df74a0c2f} of bond worth 2,32,163 crore are have been issued, ATC losses are reduced by 24.58{e7dc6fb6a411593559bed1d9924d8030d60fc3f24c9293f7c98c249df74a0c2f}, and Rs 0.52 a Unit is the gap between Average Cost of Supply and Average Revenue Realised.

In December 2016, Dakshin Haryana Bijli Vitaran Nigam became the first DISCOM to report profit of 200 crore in the first half of the financial year 2015-16 and after gap of 15 years both DISCOMS of Haryana State have turned profitable in 2018 with combined profit of 115 Crore. Similarly Chattisgarh and Gujarat have turned profitable by 2018. As per UDAY Quarterly Performance Ranking on 30th June 2018, BJP ruled Gujarat stand 1st followed by Rajasthan on second place and Himachal Pardesh at third position.

On operational part, Distribution Transformer metering (DT metering), which is crucial to understand Power theft in the electricity distribution network and better energy accounting have also shown encouraging progress– 59{e7dc6fb6a411593559bed1d9924d8030d60fc3f24c9293f7c98c249df74a0c2f} in urban and 52{e7dc6fb6a411593559bed1d9924d8030d60fc3f24c9293f7c98c249df74a0c2f} in rural work is completed. Central government firm EESL (Energy Efficiency Services Limited) is all set to procure and install 250 million smart meter for state DISCOMS. It will help both DISCOMS and customers by increasing billing process efficiency.  Central government has also requested state DISCOMS to transfer subsidies to customers’ accounts through direct benefit transfer in order to avoid delays and other associated errors.

In 2017-2018, India energy deficit has reduced to 0.7{e7dc6fb6a411593559bed1d9924d8030d60fc3f24c9293f7c98c249df74a0c2f} in 2017-18 from 4.2{e7dc6fb6a411593559bed1d9924d8030d60fc3f24c9293f7c98c249df74a0c2f} in 2013-14 as stated by present minister of power, RK Singh. He also added NDA government is considering proposal for SAMADHAN Scheme (Scheme of Asset Management and Debt Change Structure)proposed by state-run Rural Electrification Corporation (REC). Under the proposed SAMADHAN scheme, debt burden will be reduced to a manageable level by bank debts converted into equity, thereby readying the projects to be bid out. Further reforms will brighten the Indian power sector and would help in attaining PM Narendra Modi’s dream of 24*7 continuous power supply for nation. However, careful scheme monitoring is needed in order to ensure continued progress of the development cycle.

Disclaimer: The views and opinions expressed in this article are those of the author(s) and do not reflect the official position of TheTerse.in. Article had been published on as-is basis and TheTerse.in does not assume any responsibility or liability for any information(s) on this article.

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