The Government of
India, the State of Andhra Pradesh and the DISCOMs of Andhra Pradesh (APSPDCL
and APEPDCL) signed a Memorandum of Understanding (MOU) under the Scheme UDAY –
“Ujwal DISCOM Assurance Yojana” in Vijyawada (AP) today for financial turnaround
of the DISCOMs.
The MoU for operational & Financial
turnaround of Discoms was signed by Dr A.K. Verma, JS (Distribution), Ministry
of Power, Shri Ajay Jain Principle Secretary (Energy), AP , Shri H Y Dora CMD,
Southern Power Distribution Company of A.P. Ltd (APSPDCL) and Shri Muthyala
Raju, CMD, Eastern Power Distribution Company of
Andhra Pradesh Limited (APEPDCL) in presence of Chief Minister of
Andhra Pradesh Shri N . Chandrababu Naidu and Shri Piyush Goyal, Union Minister
of State (IC) for Power, Coal and New & Renewable Energy .
Under UDAY, twelve states have signed
MoU till date. Today, Andhra Pradesh has signed the MoU as the thirteenth State
to be covered under UDAY. The combined DISCOM debt (including CPSU dues) that
would be restructured in respect of these states is around Rs.2.16 lac crore, which
is half of the total outstanding DISCOM debt as on 30th September,
2015.
Speaking on the occasion Union
Minister of State (IC) for Power, Coal and New & Renewable Energy, Shri
Piyush Goyal said Andhra Pradesh is one of the top three States for achieving
100 percent electrification the State. The other two states are Gujarat and
Punjab the Minister said.. While complementing the State for the milestone,
Shri Goyal said that Andhra Pradesh is one among the few States by connecting
digital technology with electricity by introducing Smart Meter Scheme,
Chief Minister of Andhra Pradesh Shri
Nara Chandrababu Naidu said the State will carry forward the reforms in
electricity to achieve energy efficiency. He said the Government is committed
to uninterrupted and quality power supply.
The Union Minister also formally
launched Andhra Pradesh State Energy Efficiency Development Corporation
(APSEEDCO) an Energy Efficiency consultancy in collaboration with GoI, unit
started by the AP government.
Today
the Government of Andhra Pradesh has taken a positive step towards supporting
its DISCOMs by signing the MOU under UDAY for further improving the financial
and operational efficiency of the already efficient DISCOMs. The State of
Andhra Pradesh has committed to take over DISCOMs’ debt of Rs.11000 cr. during
the current year, which would reduce the interest burden of the State by Rs.330
crore per annum.
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. AT&C losses and transmission losses
would be brought down, besides eliminating the gap between cost of supply of
power and realisation. The reduction in AT&C losses of APEPDCL to 5.44%
and that of APSPDCL to 10.89% and transmission losses of the State to 3.50% is
likely to bring additional revenue of around Rs.214 crore during the period of
turnaround.
While efforts will be made by the State Government
and the DISCOMs to improve the operational efficiency of the DISCOM, 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.2199 crore due to these coal reforms.
Demand Side interventions in UDAY
such as usage of energy-efficient LED bulbs, agricultural pumps, fans &
air-conditioners and efficient industrial equipment through PAT (Perform,
Achieve, Trade) would help in reducing peak load, flatten load curve and thus
help in reducing energy consumption in the State of Andhra Pradesh. The gain is
expected to be around Rs.882 crore.
Improvement in operation efficiency
would enable the DISCOMs to borrow at cheaper rates in future, for their
infrastructure development and improvement of existing infrastructure.
An
overall net benefit of approximately Rs.4400 crore would accrue to the State by
opting to participate in UDAY, by way of cheaper funds, reduction in AT&C
and transmission losses, interventions in energy efficiency, coal reforms etc.
during the period of turnaround.
The
ultimate benefit of signing the MOU would go to the people of Andhra Pradesh.
Reduced levels of transmission and AT&C losses would mean lesser cost per
unit of electricity to consumers. Further, financially and operationally
healthy DISCOMs would be in a position to supply more power. Higher demand for
power would mean higher PLF of Generating units and therefore, lesser cost per
unit of electricity which would again mean lesser cost per unit of electricity
to the consumers.
RM/PS