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Tuesday, 19 Jan 2016
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UDAY to revive Discoms


The Union Cabinet, on 5th Nov 2015, gave its approval to a new scheme moved by the Ministry of Power - Ujwal DISCOM Assurance Yojna (UDAY). UDAY provides for the financial turnaround and revival of Power Distribution companies (Discoms). The scheme has been launched to improve financial and operational efficiencies of Discoms. It envisages to reduce interest burden, cost of power and AT&C losses. The aim is to make Discoms financially stable to ensure 24x7 supply of adequate and reliable power.




As per UDAY scheme states would take over 75 per cent of the debt of Discoms, as on 30th September, 2015 in two years. UDAY has inbuilt incentives encouraging state governments to voluntarily restructure their debts. These incentives include taking over of Discom debt by the states outside the fiscal deficit limits; reduction in the cost of power through various measures such as coal linkage rationalization, liberal coal swaps, coal price rationalization, correction in coal grade slippage, allocation of coal linkages at notified prices, priority / additional funding through schemes of MoP & MNRE, and reduction in interest burden. 


Within two months of the announcement of UDAY Scheme, 15 states have voluntarily joined UDAY which accounts for 90 per cent of the total debt of Discoms in the country. The fifteen States are Andhra Pradesh, Bihar, Chhattisgarh, Gujarat, Haryana, Himachal Pradesh, Jammu & Kashmir, Jharkhand, Odisha, Maharashtra, Madhya Pradesh, Punjab, Rajasthan, Uttarakhand and Uttar Pradesh.


On 5th Jan 2016, the Government of India, the State of Jharkhand and the JBVNL (Jharkhand Bijli Vitran Nigam Limited) signed a Memorandum of Understanding (MoU) under the scheme UDAY. The MoU will help in electrifying the remaining 2,200 villages in the state, thereby making the Prime Minister’s vision of providing 24x7 electricity to all, a reality. Jharkhand would derive an overall net benefit of approximately Rs 5,300 crores through UDAY


Power Transmission Projects in Pipeline


Power Grid Corporation of India has cleared seven investment proposals totaling Rs 2,510 crore for system strengthening - XXIV in Southern Region, connectivity for Kundankulam 3&4 (2x1000 MW) with Interstate Transmission System, provision of 400 kV bays for Northern Region System Strengthening Scheme - XXIX (NRSS-XXIX), transmission system for Ultra Mega Solar Park (750 MW) in Rewa district, Madhya Pradesh, transmission system associated with Darlipalli TPS, transmission system strengthening associated with Mundra UMPP (Part-A), and transmission System for Ultra Mega Solar Park in Anantpur District, Andhra Pradesh-Part B (Phase-ll).


Sterlite Grid has received a letter of intent for commissioning power evacuation infrastructure in Odisha built with a capital expenditure of Rs 1,250 crore. Under this project, the transmission lines will form a part of interstate transmission network, providing additional evacuation up to 5,000 MW of electricity from Odisha-based plants that are seeking better access to the power consuming centres.


With an aim to improve the voltage profile and reliability of electricity supply in the software hub of Sarjapura and the industrial suburbs of Dommasandra, Kachamaranahalli and Chandapura, transmission utility Karnataka Power Transmission Corporation (KPTCL) has planned a 26-km long, back-to-back, double-circuit transmission network between the Export Promotion Industrial Park (EPIP) and Yerandanahalli in the existing narrow corridor. Once the line is upgraded, the corridor will be capable of carrying 180 MW, representing a six-fold increase in capacity.


Powergrid Vizag Transmission, a wholly-owned subsidiary of Power Grid Corporation of India secured through tariff based competitive bidding process, has successfully charged the first element of the project: Khammam - Nagarjunasagar 400 kV D/C Transmission line on 31 December 2015, within the completion schedule specified. The transmission line of about 150 km traverses the states of Telangana and Andhra Pradesh and will facilitate inter-state exchange of power in southern region.


The first power grid of smart grid project, aimed at making Gurgaon free from power cut by providing 24X7 power supplies, will come up at Chakkarpur area. The 220 kV sub-station will be based on gas-insulated system (GIS). Smart power grid project will be jointly piloted by the state and union government. The Rs 12,000 crore project is expected to rid the city of its dependence on diesel generator sets for power back-up. The project, which will entail an overhaul of existing transmission network and upgrade of 39 substations, will be executed in two phases. 


Quote of the week:

"UDAY will lead to Rs 1.8 lakh crore savings annually”

- Piyush Goyal, Union Minister of State (IC) for Power, Coal and New & Renewable Energy


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