Mounting losses of power discoms that have crossed $3 billion and other challenges are making the government go back to the drawing board. The urgency is apparent as a new tariff policy with an aim to empower the consumer has been sent to the Union Cabinet for approval.
Stressing that adoption of the Centre’s Uday scheme in Rajasthan by the previous BJP government led to fiscal imbalance, the 15th Finance Commission on Monday suggested that state government must give priority to tourism sector, rain water harvesting
The government is in the process of rolling out a new tariff policy and UDAY 2.0 to address the issue of losses of discoms, which is the “only difficulty” in ensuring round the clock electricity supply for all, Power Minister R K Singh said.
The Centre has proposed reduction in power sector funds of the states that would not maintain performance benchmarks set under the second version of UDAY scheme, which is at the draft stage, Power Minister R K Singh said on Wednesday.
State-run electricity distribution companies (discoms) reported a near doubling of their financial losses in FY19, in what reflected a dramatic reversal of the trend of a secular decline in losses in FY17 and FY18 thanks to the UDAY scheme.
Worried over the financial health of the state-owned power distribution utilities and the less-than-anticipated success of revival schemes, the government may consider more private participation as an alternative.
Under the government’s UJALA program, the Energy Efficiency Services Limited has distributed over 353 million LED bulbs so far. This, in turn, has resulted in an estimated energy savings of 45.85 billion kWh per year with an avoided peak demand of 9,180 MW
The Finance Minister said that we will roll out a scheme that will be different from the earlier ones. It will combine UDAY with the development funds for strengthening the power distribution system.
The government is going to work with the state governments to remove the barriers in the implementation of the ambitious UDAY scheme for the turnaround of power distribution companies, Finance Minister Nirmala Sitharaman said today.
“UDAY is the most comprehensive power sector reform ever planned and executed in the country,” the Union minister of state for power Piyush Goyal told a gathering of power sector analysts in March 2017.