Prior to the launch of a new reform-based power sector scheme aimed to provide 24×7 reliable electricity to all the consumers across the country, the Centre has circulated draft guidelines to the states including Uttar Pradesh, asking them to send their comments/suggestions, if any, by March 24.
“We plan to announce the new scheme as proposed in this year’s budget by the month-end after states send their comments on the draft guidelines,” secretary (Power), Alok Kumar told the HT over the phone.
“Under the new scheme the Centre will also give grants to discoms to address their viability concerns provided they improve their financial and operational performance,” he added.
Named as ‘revamped reforms-linked results-based distribution sector scheme’, it entails undertaking several reform measures as well as the creation of infrastructure to address ‘the most pertinent’ issues prevailing in the sector, that is, high aggregate technical and commercial (AT&C) losses and the average cost of supply and average revenue realization revenue gap.
“Instead of adopting a one-size-fits-all approach the new scheme seeks to provide flexibility to states/discoms to undertake the works to meet their specific needs and problem,” says rural electrification corporation (REC) executive director R Lakshman in his covering letter annexed with guidelines circulated to states.
REC has been appointed the nodal body for the implementation of the new scheme in 16 states including UP while Power Finance Corporation will be the nodal body for the same work in 19 other states.
The draft guidelines were received by the chief secretary, UP Power Corporation Ltd (UPPCL) chairman, among others, here two days ago.
The draft guidelines say that India is surplus in power generation today and sufficient transmission capacity has been created to carry inter-state and intra-state power, while the government has been assisting states/discoms through various schemes since 2014 to improve their distribution network as well as financial health.
It further notes that the implementation of various schemes has resulted in improved access to electricity. An independent, survey according to it shows that an average Indian household gets almost 20.6 hours of power supply every day with urban areas getting 22 hours and rural areas getting 20 hours.
“Despite all these measures consumers do not get reliable 24×7 electricity in many parts of the country. Average technical and commercial (AT&C) losses and consequently an average cost of supply and average revenue realized gap continues to be high. This sub-optimal performance of the distribution sector is due to structural deficiencies and weak infrastructures,” the draft points out.
The discoms, it stresses, need to focus on improving their operational efficiencies and financial sustainability and improving consumer services to be able to meet the desired consumer service standards.
“It is with the aim and the Government of India’s commitment for providing 24×7 uninterrupted, quality, reliable and affordable power supply that the revamped reforms-based and results-linked distribution sector scheme has been formulated by the ministry of power to support discoms to undertake reforms and improve performance in a time-bound manner,” it says.
Leave a Comment