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.
This is seen as a remarkable achievement for union power, coal, RE andvmines minister, Piyush Goyal, who had launched this scheme on November 20,v2015 for the financial and operational turnaround of state power distribution companies.
The MoUs for UDAY would also be signed with the States of Assam and Telangana on Wenesday, January 4, 2017.
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.
In fact, 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.
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).
Haryana state has two DISCOMs namely UHBVNL and DHBVNL had joined UDAY on 11-Mar- 2016. While the state had incurred a loss of Rs 815 cr in 2015-16 for both DISCOMs combined and had given loss projections of Rs. 2911Crs for 2016-17, Rs. 1878 Crs for 2017-18 and Rs. 456 Crs for 2018-19, it is noteworthy that one of the two DISCOMs is back to profits—the first ever since it was created.
UDAY, which has been one of the most talked about schemes in the Indian power sector, has been designed in such a way so as to strike at the heart of the issues bugging the whole sector – the inefficient operation of the power distribution companies.
As per the ministry, 16 of the 18 states that have joined the scheme already have achieved a lower gap between their average cost of electricity supply and average cost of realisation and about 12 states have reduced their Aggregate Technical & Commercial (AT&C) loss levels. With the remaining states on board, this scheme—that has been termed as the gamechanger scheme by both industry and experts—can permanently solve the long-pending issues of India’s distribution sector and revive the power sector as a whole.