UDAY- Ujwal DISCOM Assurance Yojana

State power Distribution Company in india have huge accumulated losses and outstanding debt. Financially stressed DISCOMs are not able to supply adequate power at affordable rates to their consumer, which effect on quality of lifestyle and overall economic growth and development of community. Efforts towards 100% village electrification with 24X7 power supply and clean energy cannot be achieved without performing DISCOMs (distribution company) Power outages also adversely affect national priorities like "Make in India" and "Digital India. In addition, default on bank loans by financially stressed DISCOMS has the potential to seriously impact the banking sector and the economy at large.
Scheme "UDAY" (Ujwal DISCOM Assurance Yojana) is to improve these situation, for financial turnaround of Power Distribution Companies has been formulated and launched by the Government on 20th November, 2015 in consultation with the various stakeholders for the financial and operational turnaround of DISCOMs and to ensure a sustainable permanent solution to the problem. The scheme UDAY envisages reform measures in all sectors- generation, transmission, distribution, coal, and energy efficiency.
The Highlights of the Scheme UDAY are as follows:
  • The scheme has been formulated and launched for a sustainable financial and operational turnaround of DISCOMs; provides permanent solutions to legacy debts of approximately Rs. 4.3 lakh crores (by FY 2014-15) and address potential future losses.
  • Empowers DISCOMs with the opportunity to break even in the next 2-3 years through four initiatives.
  • Operational efficiency improvements viz. compulsory smart metering, up-gradation of transformers, meters etc., energy efficiency measures like efficient LED bulbs, agricultural pumps, fans & air-conditioners etc. to reduce the average AT&C loss from around 22% to 15%; Elimination of the gap between ACS and ARR by 2018-19.
  • Reduction in cost of power through measures such as increased supply of cheaper domestic coal, coal linkage rationalization, liberal coal swaps from inefficient to efficient plants, coal price rationalization based on GCV, supply of washed and crushed coal, and faster completion of transmission lines.

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