“UDAY is the most comprehensive power
sector reform ever planned and executed in the country”, said Shri Piyush
Goyal,Union Minister of State (IC) for Power, Coal, New & Renewable Energy
and Mines, while addressing a distinguished gathering of Analysts and Media
persons covering the Power sector, especially the progress of the UDAY Scheme,
here today.
Shri Goyal noted that the UDAY scheme is
a classic example of Comprehensive, Cooperative, Collaborative, Competitive,
Consensual and Compassionate Federalism, where in the Governments at the States
are envisaged to work in complete cohesion and collaboration with the Centre so
as to compassionately focus on the comprehensively serving the people of India
in meeting their power demands. Further, the scheme encourages State
Governments to engage in constructive competition amongst themselves so as to
achieve the financial and operational turnaround of their power departments and
DISCOMs, the Minister added.
Shri Goyal, in a motivating statement
for all stakeholders of UDAY, said that the Government’s aim is to provide
‘Assured, Quality, Affordable and Reliable 24x7 Power for All’ and it looks
forward to a constructive partnership with all stakeholders to break all silos
like Centre vs State, Private vs Public sector and among Ministries and
Departments to achieve the above aim.
The Government has a deep focus on
monitoring and fixing stakeholder accountability at each step, the Minister
said. Itis working towards a clear strategy with visionary goals, for which the
roadmap has been drawn with a view to bring in efficiency in the whole value
chain in the power sector, Shri Goyal added. The Minister also reviewed the
presentations made by States of Andhra Pradesh, Haryana and Rajasthan on their
DISCOM operational and financial turnarounds under UDAY and
later released a booklet on the journeyof the UDAY scheme.
During the event, Government of India,
the State of Kerala and Kerala State Electricity Board Limitedexchanged the
Memorandum of Understanding (MOU) under the Scheme
Ujwal DISCOM Assurance Yojana (UDAY) for operational improvement
of the Power Utility. Further, the States of Arunachal Pradesh and
Tripuraalso joined the schemefor operational improvement of the States’ Power
Distribution Departmentshere today. With this the total count of States/UTs
under UDAY reaches 26.
An overall net benefit of
approximately Rs.4178 crores, Rs. 309 crores and
Rs. 810 crores
would accrue to the States of Kerala,Arunachal Pradesh and Tripura
respectively, by
opting to participate in UDAY, by way of cheaper funds, reduction in AT&C
and transmission losses, interventions in energy efficiency, etc. during the
period of turnaround.
The MoU paves way for improving
operational efficiency of the DISCOM of theseStates. 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 and
transmission losses to 11% and 4.40% respectively by
Kerala, 10%
and
3.50% by Arunachal Pradesh
and 15%
and
4% by Tripura is
likely to bring additional revenueof around Rs.92crores, Rs. 279 crores and Rs. 554 croresto Kerala,
ArunachalPradeshand Tripura respectivelyduring the period of turnaround.
While efforts will be made by the Power
Utilityto improve their operational efficiency, and thereby reduce the cost of
supply of power, the Central government would also provide incentives to the State
Governments for improving Power infrastructure in the States 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 States and
additional/priority funding
would be considered under these schemes, if the States/Power Utilities
meets the operational milestones outlined in the scheme. With improved
operational efficiency, the DISCOMs would be in a better position to borrow
funds at cheaper rates for Power infrastructure development/improvement in
the States.
Benefits such as coal swapping, coal
rationalization, correction in coal grade slippage, availability of 100% washed coal
would also help the states to further reduce the cost of Power. Kerala is
expected to benefit around Rs.3600 crores and Tripura
around Rs. 156 croresdue to 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. The gain is expected to be around Rs.480 crores, Rs. 26 crores and Rs. 96 crores for
Kerala, Arunachal Pradesh and Tripura respectively.
The ultimate benefit of signing the MOU
would go to the people of the three States. 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. The scheme would also allow speedy
availability of cheaper power to households in the States that are still
without electricity. Availability of 24*7 power to
hitherto unconnected villages/households etc. would boost the
economy, provide more employment opportunities for the people of the three States
and thereby, improve the standard of living of the people.
Other dignitaries present during the
event were Shri P.K. Pujari, Secretary, Power, Shri Susheel Kumar, Secretary,
Coal along with other senior officials of the Union Ministry of Power, PSUs
under the Ministry and State Power departments.
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RM/VM