India’s power sector has long been riddled with the poor financial health of the power distribution companies (Discoms) despite repeated bailouts from the Central government,
Sectors of Power, Coal and Mines Show Impressive Growth After Demonetisation
ower generation growth in November on y-o-y basis was 8.53% as against October when it was 1.27%. As against Electricity Generation of 85.904 billion units in Nov 2015, Nov 2016 witnessed a figure of 93.235 –a growth of 8.53%.
The DHBVN or Dakshin Haryana Bijli Vitran Nigam--- one of the two state power distribution companies of Haryana that joined the UDAY scheme on March 11, 2016 has not just been able to completely wipe out its losses for the first time but has also posted a profit of Rs 201.35 crore in the first half of the current financial year (2016-17) as against a loss of Rs 479 crore last financial year (2015-16).
In what comes as a big success for the Union minister for power, RE, coal and mines, Piyush Goyal (who spent days and months in convincing states to join the Centre’s flagship scheme —- UDAY or Ujwal DISCOM Assurance Yojana for the financial and operational turnaround of state power distribution companies), India has got its first state power distribution company that has been able to eliminate its losses after joining within 10 months of joining UDAY.
Moving in this direction, the Power Ministry is likely to award the works to have IT-driven power distribution in as many as 2,636 towns across the country by the end of December this year. The savings on this account, once the work is completed in these towns, could be in the range of Rs 10,000 crore annually.
IT enabled power distribution systems helps discoms reducing aggregate technical and commercial (AT&C) losses. This aids them to monitor the feeders online. Besides IT driven power distribution system provides consumers a host of services like online bill payment, applying for new connection and knowing status of power supply situation in these towns in real time basis.
Aravali Power Company Pvt. Ltd. (APCPL), Jhajjar has been supplying power to the BSES DISCOMs in Delhi, viz BSES Rajdhani Power Ltd. (BRPL) & BSES Yamuna Power Ltd. since 05.03.2011. The power allocated to these DISCOMs from APCPL is 445 MW (372 MW & 73 MW respectively) & average monthly energy bill is presently of the order of Rs. 87 Cr. (Rs. 73 Crs. & Rs. 14 Crs. respectively) for the current financial year.
Goyal Ask States to Encourage Industry and Enterprises For New Investments on Back of Assured Power Supplies
Goyal said electricity can be offered to the industry on a long term basis for 10-15 years and at a fixed cost, even if it comes at a slight escalation. This, he said, will encourage industry to consider new investment opportunities in states, leading to new job creation opportunities.
In order to create job opportunities in every state, power, coal, RE and mines minister of state (Independent Charge), Piyush Goyal has proposed to states to encourage industry and enterprises and consider new investment and growth opportunities by offering them quality supply of power at an affordable price.
State power distribution companies (discoms) are staring at a net loss of Rs 8,000 crore in the current fiscal owing to purchase agreements
Even though Maharashtra did not have any major financial losses, the financial efficiencies under UDAY could benefit the state to the tune of Rs 1500 crore every year
Giving another lease of life to ailing state Discoms, the Union Cabinet under the Chairmanship of Prime Minister Narendra Modi
New and Renewable Energy Ministry plans to set up grid-connected 1,000 MW wind energy projects which will supply power at price discovered through competitive bidding. Read More…