The news on the Ujjwal Discom Assurance Yojana (UDAY) is a mixed bag. On the positive side, the financial metrics of state power distribution companies (discoms) improved in nine months of FY17, with their interest cost burden falling to 8.5%, as against 13% earlier. However, sustaining this performance would be a challenge in FY18 when […]
Under the BJP government, UP’s power sector is on the revival path. After dithering for years over implementation of bold measures to bridge the revenue gap and restore UP Power Corporation Ltd’s financial health, the state has decided to bite the bullet on tariff increase for non-industrial consumers.
The gap between average cost of power supply and average revenue of state power distribution companies has narrowed showing positive impact of the Centre’s Ujwal Discom Assurance Yojana(Uday), a power ministry statement said.
Benefits Of UDAY Scheme Have Started Showing With Steep Fall in Financial Losses of States, Piyush Goyal
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.
Twenty siz states are now part of the UDAY scheme, meant for the revival of debt stressed discoms, after Kerala, Arunachal Pradesh and Tripura formally joined the programme.
Power Finance Corporation Ltd. (PFC) signed a loan agreement with Maharashtra State Electricity Distribution Co. Ltd. (MSEDCL) for a financial assistance of Rs. 3000 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.
After several rounds of negotiations, Tamil Nadu is to join the Centre’s Ujwal Discom Assurance Yojana (UDAY Scheme) on January 9.
Karnataka and Goa joins government’s popular initiative, Ujwal DISCOM Assurance Yojana (UDAY), a scheme meant