It also approves extension of timeline for taking over 50 percent of outstanding debt of DISCOMs
GN Bureau | June 22, 2016
The union cabinet under the chairmanship of prime minister Narendra Modi has accorded its approval for an extension of timeline for taking over 50 percent of the outstanding debt of power distribution companies (DISCOMs) under UDAY (Ujjwal DISCOM Assurance Yojana) - a scheme for operational and financial turnaround of DISCOMs, as per a release by PIB.
The time limits have now been extended by one year from the earlier stipulated date of March 31, 2016. This decision would allow states, which could not participate in the scheme UDAY earlier, to join the scheme.
Under UDAY, 19 states have so far already given their consent to join the scheme, out of which 10 states – Rajasthan, Uttar Pradesh, Chhattisgarh, Jharkhand, Punjab, Bihar, Haryana, Gujarat, Uttarakhand and Jammu & Kashmir have already signed MOUs with the central government.
In the year 2015-16, bonds worth Rs 99,541 crores were floated by the participating states to clear 50 percent of the outstanding debt of states and outstanding CPSU dues in Jharkhand and Jammu & Kashmir. Further, DISCOM bonds worth Rs 11,524 crores were floated. In the year 2016-17, bonds worth Rs 14,801 crores have been floated by the state of Uttar Pradesh.
UDAY provides for the financial turnaround and revival of DISCOMs and ensures a sustainable permanent solution to this long standing problem.
UDAY envisages a permanent solution of past as well as potential future issues of the sector. It empowers DISCOMs with the opportunity to break even in the next 2-3 years. This is through four initiatives:
Operational efficiency improvements like compulsory smart metering, upgradation of transformers, meters etc., energy efficiency measures like efficient LED bulbs, agricultural pumps, fans and air-conditioners etc. will reduce the average Aggregate Technical and Commercial (AT&C) loss from around 22 percent to 15 percent and eliminate the gap between average revenue realised (ARR) and average cost of supply (ACS) by 2018-19.
Reduction in cost of power would be achieved through measures such as increased supply of cheaper domestic coal, coal linkage rationalisation, liberal coal swaps from inefficient to efficient plants, coal price rationalisation based on GCV (Gross Calorific Value), supply of washed and crushed coal and faster completion of transmission lines.
With this approval for the extension of timeline, the states shall take over 75 percent of DISCOM debt as on September 30, 2015 by March 31, 2017 by issuing bonds, an intervention to lower the interest burden of debts. With the approval, states which could not join so far would get an opportunity to join UDAY and put the DISCOM reforms on an accelerated path.
Maya Kodnani, a BJP leader who was the MLA from Naroda when this locality on the outskirts of Ahmedabad witnessed one of the most gruesome episodes during the Gujarat riots of 2002, was acquitted by the Gujarat High Court on Friday. Her acquittal in the Naroda Patiya massacre case is only a sequel to
The number of civic complaints with BMC has increased from 61,910 in 2015 to 92,329 in 2017, which is 49% in two years. A report titled ‘Civic Issues Registered by Citizens and Deliberations done by Municipal Councillors in Mumbai’ released by Praja Foundation has found some interesting facts a
Atishi Marlena is among the nine AAP functionaries who were dismissed by the union home ministry asserting that their posts were created without the approval of the centre. Marlena, served as education advisor of the Aam Aadmi Party (AAP)-led government in Delhi. While she was intrumental in improving the
The Fortune magazine has named three Indians – lawyer Indira Jaising, industrialist Mukesh Ambani and architect Balkrishna V Doshi – among the world’s greatest fifty leaders.
Remember Kardashev scale? For the uninitiated, it’s a method of measuring a civilization’s level of technological advancement, based on the amount of energy it is able to use for communication. We will get to its unconventional relevance to the big urban questions at the end, but just keep it a
Out of 1580 MPs and MLAs with criminal cases, 48 (three MPs and 45 MLAs) have declared cases related to crime against women. The Association for Democratic Reforms (ADR) and