State to derive an Overall Net Benefit of approximately Rs. 11,000 crores through UDAY. The State would have savings of about Rs.950 cr. in annual interest cost through reduction of debt and through reduced interest rates on the balance debt.
In a significant move and following months of persuasion by the Centre, Tamil Nadu came on board the power ministry’s flagship scheme UDAY. By signing the MOU under UDAY, the State Government is taking over 75% of debt of Rs. 30,420 crores of TANGEDCO. The scheme also provides for the balance debt to be re-priced or issued as State guaranteed Discom bonds, at coupon rates around 3-4% less than the average existing interest rate.
Financial health of state power DISCOMs has been a big
blot on the performance of state’s power sector and in order to make these DICSOMs financially viable and operationally sustainable, the scheme UDAY assumes a lot of significance.
Two more states of Assam and Telangana will be joining the power ministry’s flagship scheme, Ujwal DISCOM Assurance Yojana (UDAY)—taking the tally ofvstates having joined the scheme to 20.
Striving hard to bring down the power losses, DISCOMs have been constantly monitoring the situation and issuing directions to its officials for keeping a tight vigil on power thefts by strengthening vigilence.
Uttar Pradesh has benefited from the Centre's UDAY scheme with its AT&C losses down over 1% from 34.22% to 33.03% (as per provisional figures of MoP as on Sep 5, 2016). Rajasthan's AT&C losses are down 27.32% as against 28.9% while that of Haryana and Bihar by another 0.5-0.8%.
Bonds Worth Rs 1.7 lakh crore have been issued by states Under UDAY Scheme and the AT&C Losses are also Down by 1-2%. Rajasthan takes the lead in issuing bonds under the Centre’s UDAY Scheme at Rs 71k crore followed by Uttar Pradesh at 44,510 crore and Haryana at Rs 25,951 crore
The Minister gave the motto, ‘Together We Can’ and asked States to look beyond individual State and departmental issues and keep a National perspective in solving the challenges faced by the common man. “Improvement is best change that is possible”, the Minister said.
With a wide gamut of issues concerning the power, renewable energy, coal and mines sector on the agenda of the state power minister’s meet, there is a strong possibility that the bi-annual state power minister’s conference is now held thrice a year.
A Memorandum of Understanding (MOU) under UDAY was signed on October 7th between the power ministry (Government of India), the State of Maharashtra and the DISCOM of Maharashtra (MSEDCL).
Maharashtra has become the 17th State to join the UDAY – “Ujwal DISCOM Assurance Yojana”, the Centre’s financial and operational turnaround scheme for state power distribution companies (DISCOMs). The move will see the state reap benefits of Rs 9,725 crores by way of cheaper funds, reduction in AT&C losses and enable it to eliminate the gap between cost of supply of power and realisation.
To be inaugurated by Piyush Goyal, Union Minister of State (IC) for Power, Coal, New & Renewable Energy and Mines, the conference is being held on the sidelines of the International Energy Conference-SWITCH Global Expo organized by Government of Gujarat from 06th to 10th October, 2016 at Vadodara.
In order to review the implementation of various ongoing schemes and programmes and deliberate on a host of issues pertaining to Power, Coal, Renewable Energy and Mines sectors, a two-day conference of Ministers for Power, New & Renewable Energy & Mines of States & Union Territories will be held on 7th & 8th of October in Vadodara, Gujarat.
States Are Crticising Because Centre’s Transparent Platform — GARV puts pressure on them to deliver timely and quality power to consumers, adds Dr Verma.
Imagine if the GARV app was not there. In its absence and had we not put the information in the public domain, this criticism would not have probably even surfaced. So firstly it requires courage to go to the people. Transparency is the key to effective administration. All of us whether the Centre or states, are answerable and accountable to the people of this country, said Dr A K Verma