More than the menace of T&D losses is the problem of unaccounted or unmetered connections that have not been shared by certain states. There were 63 lakhs unmetered connections in Uttar Pradesh, a trend that was so far kept under wraps by the previous state government.
Impressive reduction in financial losses of states who have joined the UDAY (or Ujwal DISCOM Assurance Yojana) scheme have come to fore. Union minister of power, coal, RE and mines Piyush Goyal shared on Monday how the financial losses of Tamil Nadu are expected to come down by one-third this year while that of Rajasthan (that stood at Rs 15000 crore) will come down to about Rs 5500 crore.
India’s power distribution system is showing concrete signs of revival and lower operational losses as chronically inefficient states have significantly narrowed the gap between cost and revenue, reduced unmetered supply and are planning large bond issues in 10 days.