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Ujwal DICOM Assurance Yojana, popularly known as UDAY Scheme, was launched by the Ministry of Power in the year 2015. The scheme aims to provide financial and operational profitability to the state owned power distribution companies (DISCOMs).
DISCOMS are the units that are charged with the responsibility of purchasing power from the power generation companies and selling it to the ultimate consumers. The primary reason for the failure of these DISCOMs to achieve financial profitability is their failure to collect the total cost of the power purchased from the power generation companies while selling them to the final consumers.
Another important purpose of the scheme was to achieve uninterrupted and affordable power supply in every corner of the country. The scheme was envisioned keeping in mind the various needs of the citizens of the country when it comes to power generation and supply. Bearing this mind, the scheme has set some objectives that it aims to achieve under this scheme.
The objectives of the scheme are mentioned below
The features of the scheme that will enable it in achieving the ultimate goal of financial turnaround for these DISCOMS are mentioned below.
The scheme was a much needed relief to the State DISCOMs. Many states that implemented the scheme showed reduction in losses or have even gained profits in the year 2019. The various positives or benefits of the scheme are mentioned below.
The scheme has laid out certain targets that have to be achieved by the set dates. Achieving these targets will determine the success of the scheme as well as boost the spirit of the personnel working towards its success. Following are the targets set under the scheme.
Activity | Expected date for achievement |
---|---|
Feeder Metering | 30 June 2016 |
DT Metering | 30 June 2017 |
Consumer indexing & GIS Mapping | 30 Sept 2018 |
Upgradation of DT, Meters etc | 31 Dec 2017 |
Smart meter for consumers | greater than 500 Unit by Dec 17; greater than200 unit by Dec 2019 |
AT&C losses | 15% by FY 2019 |
Elimination ACS-ARR gap | FY 2019 |
The scheme has had many positive impacts since its launch in achieving its objects. Some examples of such impact or influence of the scheme are mentioned below.
1. When was the Ujwal DISCOM Assurance Yojana initiated?
Ujwal DISCOM Assurance Scheme was initiated in the year 2015 by the ministry of power.
2. What is the percentage of debt to be retained by the DISCOMS?
As per the scheme guidelines, the DISCOMs are required to retain 25% of the total debt in the form of either State backed DISCOM Bonds or to be re-priced by the Banks or the Financial Institutions with an interest rate that is less than the bank base rate + 0.10%.
3. What is the full form of UDAY Scheme?
The full form of UDAY Scheme is Ujwal DISCOM Assurance Yojana.
4. What was the main purpose of launching this scheme?
The main purpose of launching this scheme is to achieve financial and operational soundness or stability of the State DISCOMs or power distribution companies, reduction in the power generation cost, achieving energy efficiency and conservation and to develop alternate sources of energy like renewable energy.
5. What are some of the common problems faced by the State DISCOMS?
Some of the common problems or challenges faced by the state DISCOMs are the loss of power due to theft, faulty meters, loss of power in transmission and distribution system, huge gap or difference between the average per-unit cost of supply (ACS) and average revenue that is realized (ARR), lack of political willingness to overcome the commercial losses, etc.
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