Power sector on recovery path but may miss Uday scheme targets in Raj


Power sector on recovery path but may miss Uday scheme targets in Raj

The beleaguered power sector in Rajasthan is on the path of recovery even though it is set to miss the targets under the Uday and PAT scheme of reducing the transmission and distribution losses to 15% by the end of the current financial year.

According to top government officials in the energy department, the efficiency improvements across its three verticals such as transmission, generation and distribution are significant despite the government not undertaking any price increases since September 2016. In fact, there is no plan to raise tariffs till April next year, they said.

“The three distribution companies in the state incurred a loss of Rs 15,650 crore in 2013-14. For every unit of energy sold, the loss was Rs 3.65 against a tariff of around Rs 7. But in 2017-18, we have been able to reduce it to 50 paisa per unit last year.

If the interest cost burden arising out of past debt is removed, we are profitable,” said energy secretary Sanjay Malhotra, at a CII-Rajasthan event on ‘Profitability through Energy Conservation & Efficiency.’ Read More

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