An ambitious scheme of the Narendra Modi government, launched in 2015 to help embattled Indian power distribution companies, now weighs heavy on the finances of various states.
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.
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.
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.
Despite a big slippage on meeting the operational goals set under the UDAY scheme in FY19 and the Union power ministry repeatedly flagging inadequate tariff hikes as one of the reasons behind state electricity boards’ (SEBs) weak financial health
Inadequate revision of rates alongwith delay in filing tariff petitions are likely to remain an area of concern in the financial year 2020 for distribution companies (Discoms), says a report.
While the operational targets set under the UDAY scheme for the revival of electricity discoms are being missed and the efficacy of the scheme itself has come under a cloud, several state governments are putting further burden on these entities by unveiling various sops for different sections of consumers
With the current estimate of thermal sector stress at over Rs 2.5 lakh crore of investments, the future of the power sector does not look promising. The question is, has UDAY, Modi government’s flagship scheme to alleviate power sector from its distress, worked
While the Centre plans to come up with Ujwal DISCOM Assurance Yojana (UDAY) 2.0 after the first one failed, experts feel this version of the scheme will meet the same fate as the government has not learnt anything from its experience.
After trimming its aggregate technical and commercial (AT&C) losses to 11.9%, the Kerala State Electricity Board (KSEB) has pitched for hiking user tariffs by 10% to add at least Rs 1,100-crore revenue per year.