UDAY scheme: Modi government may miss target due to states’ non-compliance


UDAY scheme: Modi government may miss target due to states’ non-compliance

With the chances of meeting the UDAY target to limit the aggregate technical and commercial (AT&C) losses of electricity distribution companies (discoms) to under 15% by FY19-end virtually nil, the government has cited factors such as inadequate hikes in power tariffs, incremental rise in ‘open access’ transactions and outstanding dues accumulating from state government departments as the main hurdles.

In its latest note on the progress of the revival scheme for discoms—launched in November, 2015 —the power ministry said that outstanding dues from state government departments have jumped by 22% annually to Rs 35,603 crore in FY18, severely hurting cash flows for discoms.

The ministry has also pointed out that Andhra Pradesh, Assam, Chhattisgarh, Maharashtra, Telangana and Uttar Pradesh have not raised electricity  Read More

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