Maharashtra has become the 17th state in the country to join power distribution reform scheme Ujjwal Discom Assurance Yojana (UDAY). The state government and Maharashtra State Distribution Company Ltd (MSEDCL) signed a pact with the centre under the scheme at the two-day state power ministers’ conference today.
Under UDAY, 16 states and Union Territories had already signed the pact so far. The combined discom debt, including Central PSU dues, that would be restructured in respect of these states is around Rs 2.57 lakh crore, around 68 per cent of the total outstanding discom debt at the end of 30 September.
“An overall net benefit of approximately Rs 9,725 crore would accrue to Maharashtra by opting to participate in UDAY, by way of cheaper funds, reduction in Aggregate Technical & Commercial (AT&C) losses, interventions in energy efficiency, coal reforms etc. during the period of turnaround,” the power ministry said in a statement.
As part of the scheme, the state government has committed to take over 75 per cent of the discom’s non-capex debt of around Rs 6,600 crore during the current year. The balance 25 per cent of such debt remaining with the discom would be converted into Bonds or repriced at cheaper rates. This would reduce the interest burden of the state and the discom by Rs 595 crore.
The state would bring down the AT&C losses through compulsory distribution transformer metering, consumer indexing and GIS mapping of losses and feeder audit. Also, it will eliminate the gap between cost of supply of power and realisation. “The reduction in AT&C losses of MSEDCL to 14.39 per cent and the decline in transmission losses of the state to 3.75 per cent is likely to bring additional revenue of around Rs 2,200 crore during the period of turnaround,” the ministry said.
As part of the scheme, the centre would also provide incentives to the discom and the state government for improving power infrastructure in the State and for further lowering the cost of power. “The central schemes such as Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY), Integrated Power Development Scheme (IPDS), Power Sector Development Fund are already providing funds for improving power infrastructure in the state and additional funding would be considered under these schemes if the state meets the operational milestones,” the ministry said.
The state government will 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 central PSUs. Other benefits such as coal swapping, coal rationalization, correction in coal grade slippage, availability of 100 per cent washed coal would help the state to further reduce the cost of power. The state would gain around Rs 4,500 crore due to these coal reforms. Saquon Barkley Womens JerseyShare This