New Delhi: The Government of India, the State of Uttarakhand and the Uttarakhand Power Corporation Limited (UPCL) which takes care of the power distribution activity of Uttarakhand signed Memorandum of Understanding (MOU) under the scheme UDAY – “Ujwal DISCOM Assurance Yojana” on 31 March, 2016 for operational turnaround of the DISCOMs.
Under UDAY, 10 states have signed MoU till date. The combined DISCOM debt that would be restructured in respect of these states is around Rs.1.96 lac crore, which is approximately 45% of the total outstanding DISCOM debt of Rs.4.3 lac crore as on September 30, 2015.
The Government of Uttarakhand has taken a positive step towards supporting its DISCOM by signing the MOU under UDAY for further improving the operational efficiency of the already efficient DISCOM through compulsory distribution transformer metering, consumer indexing and GIS mapping of losses, upgradation of transformers, meters, 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 14.50% and 1.78% respectively is likely to bring additional revenue of around Rs.645 crore during the period of turnaround.
While efforts will be made by the state government and the DISCOM 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. Both additional and priority funding would be considered under these schemes, if the State/DISCOMs meet the operational milestones outlined in the scheme.
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 Uttarakhand. The gain is expected to be around Rs.303 crore.
An overall net benefit of approximately Rs.962 crore would accrue to the State by opting to participate in UDAY, reduction in AT&C and transmission losses, interventions in energy efficiency, etc. during the period of turnaround.
The ultimate benefit of signing the MoU would go to the people of Uttarakhand. Reduced levels of transmission and AT&C losses would mean lesser cost per unit of electricity to consumers and will increase consumption. Higher demand for power from DISCOM 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.