NEW DELHI: The Central government has today signed 4 Memorandum of Understandings (MoUs) under the UDAY scheme with Nagaland and 3 Union Territories for operational improvements of discoms (state power distribution companies).
"On the 2nd Anniversary of Ujwal DISCOM Assurance Yojana (UDAY) today, the Government of India signed 4 MoUs under the scheme with Nagaland and with Union Territories (UTs) of Andaman & Nicobar Islands, Dadra & Nagar Haveli and Daman & Diu for operational improvements," Power Ministry statement said.
According to the statement these state/UTs have joined only for operational improvement and shall not undergo financial restructuring/issue of bonds under the scheme. With the above, UDAY club has now grown to 27 states and 4 UTs.
An overall net benefit of approximately Rs 551 crores, Rs 18 crores, Rs 13 crores and Rs 10 crores, respectively would accrue to Nagaland, Andaman & Nicobar, Dadra & Nagar Haveli and Daman & Diu respectively by opting to participate in UDAY, by way of cheaper funds for capex, reduction in AT&C (aggregate technical and commercial) and Transmission losses, interventions in energy efficiency, etc during the period of turnaround.
The MoU paves way for improving operational efficiency of the Electricity Departments/DISCOM of the state/Union Territory.
Through compulsory distribution transformer metering, consumer indexing & GIS mapping of losses, upgrade/change transformers, meters etc, smart metering of high-end consumers, feeder audit etc.
The AT&C (Aggregate technical and commercial) losses and transmission losses will be brought down, besides eliminating the gap between cost of supply of power and realisation.
While efforts will be made by the states/UTs to improve their operational efficiency, and thereby reduce the cost of supply of power, the Central government will also provide incentives to the state/UTs for improving power infrastructure and for further lowering the cost of power.
The Central schemes such as Deen Dayal Upadhyaya Gram Jyoti Yojana, Integrated Power Development Scheme(IPDS), Power Sector Development Fund or such other schemes of Ministry of Power (MoP) and Ministry of New & Renewable Energy (MNRE) are already providing funds for improving power infrastructure and additional/ priority funding would be considered under these schemes, if the state/UTs meets the operational milestones outlined in the scheme.
Demand Side interventions in UDAY such as usage of energy-efficient LED bulbs, agricultural pumps, fans & airconditioners and efficient industrial equipment through PAT (Perform, Achieve, Trade) will help in reducing peak load, flatten load curve and thus help in reducing energy consumption in the state/UTs.
Further, with improved efficiency, they would be in a better position to fund their capex at cheaper rates for Power infrastructure development/improvement in the state/UTs.
Reduced levels of AT&C losses would mean lesser cost per unit of electricity to consumers.
Further, an operationally healthy Discoms/Electricity Department would be in a position to supply more power.
The scheme will also allow speedy availability of cheaper power to households in the state/UTs that are still without electricity.
Availability of 24X7 cheaper, round the clock power would boost the economy, promote industries/tourism, thereby improving employment opportunities for the people of these State/UTs, it added.