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.
State-run electricity distribution companies (discoms) reported financial losses of Rs 21,658 crore at the end of FY19, up 4.4% year-on-year, reversing the declining trend since the UDAY scheme for these entities’ revival was launched in November 2015.
Timely revision in power tariffs did not happen even after the launch of UDAY, the debt restructuring programme of the NDA government, in November 2015. In most cases, discoms have not even submitted the mandatory tariff petitions to state electricity regulators (SERCs).
The total debt of power distributors is expected to go up to the level before the implementation of government’s revival plan for the ailing units as states’ finances deteriorated over the past few years.
The UDAY scheme does not address basic issues in power distribution
A recent BusinessLineanalysis (April 21) points out how the financial condition of power distribution companies has only worsened after the launch of the Ujjwal Discom Assurance Yojana (UDAY).
The delays faced by most States in achieving financial and operational goals under the much-touted Ujwal Discom Assurance Yojana (UDAY), launched in 2015, are raising niggling questions on the efficacy of the scheme.
Reduced power demand has been an issue for some time in India and it has been blamed largely on financially challenged DISCOMs (utility companies). One of the most overlooked reasons is energy efficiency.