Uttar Pradesh Joins “Uday” Scheme
Uttar Pradesh Joins “Uday” Scheme , Would Derive an
Overall Net Benefit of Rs.33000 Crore Through “UDAY”
Shri Piyush Goyal Unveils Logo of “Uday” Scheme
Shri Piyush Goyal Unveils Logo of “Uday” Scheme
The Government of India, the
State of Uttar Pradesh and Uttar Pradesh Power Corporation Limited(UPPCL), on
behalf of DISCOMs of Uttar Pradesh (Dakshinanchal Vidyut Vitran Nigam
Limited, Kanpur Electric Supply Company Limited, Madhyanchal Vidyut Vitrran Nigam
Limited, Paschimanchal Vidyut Vitran Nigam Limited and Purvanchal Vidyut Vitran
Nigam Limited) signed Memorandum of Understanding (MOU) under the Scheme UDAY –
“Ujwal DISCOM Assurance Yojana” here today for operational and financial
turnaround of the DISCOMs. The signing ceremony was held in the august presence
of the Minister of State ( IC) for Power, Coal & New and Renewable Energy
Shri Piyush Goyal. On the occasion of signing ceremony, Shri
Goyal also unveiled the logo of “UDAY” scheme .
Uttar Pradesh has joined the
list of States that have accepted UDAY for bringing about a positive change in
the Power Sector scenario of the States. Rajasthan, Chhattisgarh and Jharkhand
have already signed the MoU under UDAY.
The Distribution Utilities of
the country are reeling under heavy debt burden. As on 30th September,
2015, the outstanding debt of the DISCOMs stood at Rs.4.3 lakh crore. In
order to bring relief to these Utilities from the burden of debt, and to
improve their overall performance, Government of India launched the Scheme UDAY
on 20thNovember, 2015, after a series of discussions with all the
stakeholders, namely the State Governments, DISCOMs, lenders etc. UDAY is an
aim to ensure a permanent solution to the debt-ridden Distribution utilities to
achieve financial stability and to improve their operational efficiencies, for
sustained growth.
The Government of Uttar
Pradesh has taken a major step towards improving the financial health of the
DISCOMs by signing the MOU under UDAY and agreeing to take over the debt of the
DISCOMs. The Government of Uttar Pradesh would take over Rs.39900
crore. of DISCOM debt, being 75% of the total DISCOM debt of Rs.53200 crore.
outstanding as on 30.09.2015, as envisaged in the scheme. The
scheme also provides for the balance debt of Rs.13300 crore. to be re-priced or
issued as State guaranteed DISCOM bonds, at coupon rates around 3% less than
the average existing interest rate. The annual saving in the interest cost to
the DISCOMs would be around Rs.1600 crore. on account of State take-over of
debt and reduction in interest rates on the balance debt.
Besides helping the DISCOMs to
bring about financial turnaround, UDAY lays stress on improving operational
efficiencies of the DISCOMs. During the period of turnaround, the State of
Uttar Pradesh and the DISCOMs will bring about operational efficiency through
compulsory Feeder and Distribution Transformer metering, consumer indexing
& GIS mapping of losses, upgrade/change transformers, meters etc., smart
metering of high-end consumers, thereby bringing about reductionh in
transmission losses and AT&C losses, besides eliminating the gap between
cost of supply of power and realisation. The reduction in AT&C
losses and transmission losses to 15% and 3.95% respectively is likely to bring
additional revenue of around Rs.17700 crore. during the period of turnaround.
With the financial turnaround
through financial and operational efficiencies, the rating of the DISCOMs would
improve, which would help them in raising cheaper funds for their future
capital investment requirement. This is expected to provide interest
cost saving of around Rs.200 crore. to the DISCOMs.
While efforts will be made by
the State Government and the DISCOMs to improve the operational efficiency of
the DISCOMs, and thereby reduce the cost of supply of power, the Central
government would also provide incentives to the DISCOMs and the State
Government for improving Power infrastructure in the State and for further
lowering the cost of power. The Central schemes such as DDUGJY, IPDS, Power
Sector Development Fund or such other schemes of MOP and MNRE are already
providing funds for improving Power Infrastructure in the State and
additional/priority funding would be considered under these schemes, if
the State/DISCOMs meet the operational milestones outlined in the scheme. The
State shall also be supported through additional coal at notified prices and in
case of availability through higher capacity utilization, low cost power from
NTPC and other CPSUs. Other benefits such as coal swapping, coal
rationalization, correction in coal grade slippage, availability of 100% washed
coal would help the state to further reduce the cost of Power. The State would
gain around Rs.5600 crore. due to these coal reforms.
Energy Efficiency is also one
of the focus areas of UDAY. In order to help reduce the peak load and reduce
energy consumption the State of Uttar Pradesh, the State Government and the
DISCOMs would promote usage of energy-efficient LED bulbs, agricultural pumps,
fans & air-conditioners, efficient industrial equipment through PAT
(Perform, Achieve, Trade) etc. The saving is expected to be around Rs.3500
crore.
The ultimate benefit of
signing the MOU would go to the people of Uttar Pradesh. Higher demand for
power from DISCOMs would mean higher PLF of Generating units and therefore,
lesser cost per unit of electricity thereby benefitting consumers. The DISCOMs
would also increase power supply in areas with reduced AT&C losses. The
scheme would allow speedy availability of power to around 490 villages and
143.54 lakh households in Uttar Pradesh that are still without electricity.
Availability of 24x7 power to hitherto unconnected villages/households etc.
would boost the economy, promote industries, thereby improving employment opportunities
and see Uttar Pradesh develop into one of the leading industrialised States in
India.
Uttar Pradesh would derive an
overall net benefit of approximately Rs.33000 crore. through UDAY, by way of
savings in interest cost, reduction in AT&C and transmission losses,
interventions in energy efficiency, coal reforms etc. during the period of
turnaround.
UDAY is hence an effort not only to make the DISCOMs financially and
operationally healthy, but also enable the Government to brighten and transform
the lives of millions of people.
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