What is UDAY Scheme ?

By -

The Ujwal DISCOM Assurance Yojana (UDAY) was launched in November 2015 by the Indian government to improve the financial and operational health of power distribution companies (DISCOMs). DISCOMs in India have historically struggled with high levels of debt, operational inefficiencies, and technical losses, impacting their ability to provide consistent and affordable electricity to consumers. UDAY sought to address these challenges through a series of structural and financial reforms.

Key Components of the UDAY Scheme:

  1. Debt Restructuring: A major component of UDAY was the restructuring of DISCOM debt. Under the scheme, state governments took over 75% of the debt held by their DISCOMs and issued bonds to cover it. This move reduced the interest burden on DISCOMs, allowing them to focus more on operational improvements.

  2. Operational Efficiency Improvements:

    • Reduction in AT&C Losses: Aggregate Technical and Commercial (AT&C) losses, which result from theft, unbilled consumption, and technical inefficiencies, were targeted for reduction. UDAY set specific loss-reduction targets to improve the efficiency and financial viability of DISCOMs.
    • Smart Metering and Feeder Segregation: UDAY promoted the installation of smart meters and the segregation of agricultural feeders from urban and rural residential feeders, making monitoring and billing easier and reducing losses.
    • Energy Efficiency Measures: The scheme also encouraged DISCOMs to adopt energy-efficient practices, such as LED lighting and distribution transformers, to reduce power consumption and system losses.

  3. Tariff Rationalization: UDAY emphasized timely tariff revisions and cost-reflective pricing, urging state regulatory commissions to set tariffs that accurately reflect the cost of power. This approach was meant to help DISCOMs recover their operational costs and reduce subsidy dependency.

  4. Reducing Financial and Operational Dependence on Subsidies: UDAY focused on reducing DISCOMs' reliance on state government subsidies by ensuring that tariffs covered the actual cost of power supply, and it called for better subsidy management to address funding gaps.

  5. RPO Compliance: The scheme encouraged compliance with Renewable Purchase Obligations (RPOs), requiring DISCOMs to procure a portion of their power from renewable sources. This move aligned with India's broader renewable energy targets and ensured that DISCOMs contributed to clean energy growth.

Outcomes and Challenges:

While UDAY achieved moderate success, helping to reduce interest costs and partially improve DISCOM operations, challenges remain. Many DISCOMs still face financial constraints due to persistent AT&C losses, subsidy gaps, and inadequate tariff adjustments. The scheme highlighted the importance of ongoing regulatory reforms, financial restructuring, and operational efficiency but indicated the need for deeper, sustained efforts for long-term success in India's power distribution sector.

Comments

Post a Comment

Popular Posts

Recycle Marts development in urban and rural areas

By -
Image
In most of the western countries and developing countries are launching the new concept called the “ Recycling Malls ” in major cities and towns across their countries. The main objective of the recycle mart is to sell the used products (ex: used plastic, glass, paper, etc.). This is an innovative way of making things and helping in reducing environmental pollution in the surroundings across the globe.   There are different kinds of pollutions that are generated effecting Air, Water, Land, Food, Sea, Ocean pollutions. It is damaging the EARTH gradually and impacting directly and indirectly that are highly toxic and increase the scope of new harmful viruses etc.   Issue: Wastes are different types that are generated in the world which is mostly produced by man. Anything that is produced excess and unable to control is added into pollutant list. The recycling plants are getting adopted across the globe with different techniques, methodologies and Strategic ways in c...
Read more

World’s Largest Single Rooftop solar power plant in India

By -
Image
Solar panels installed on the roof with a capacity of 11.5 MW in Punjab state in India India’s solar mission which has kept at a target of 175 GW and the government is trying to keep its word to generate power from all kinds of Renewable Energy Resources. As it is focused on Solar, Wind and Biomass power generation technologies. We all know that a roof is the zero cost of land and uses the space for solar panel installation. There is no requirement of a special setup is installing the solar roof. Depending upon the roof size and shading and direction of the sunlight is considered for setting up the solar panels. But, most of them have small or medium roofs that can generate in kiloWatts (kW) or Megawatt (MW) scale. In Amritsar, there is an installation od 11.5 MW capacity of a solar power plant which is completely covered with solar roof which will benefit 8000 households was built by Radha Saomi Satsang Beas (RSSB), a religious organization in Punjab. Badal along with New and Re...
Read more

Honda can be the Indian EV Market giant comparing to OEMs

By -
Image
Honda is one of the popular brands in the Indian automobile industry. with the Activa petrol scooter with multiple versions, the company is come up with an electric version which Indian consumers are awaiting for the same. Apart from their plans to launch the electric vehicle in the Indian market, some of the key points are strong enough for Honda can capture a great EV market share in the country. Kinetic Honda is the predecessor for Honda Activa which was a big hit in 90s.  Year wise Activa Models released by Honda:  2001,  2002,  2007,  2008,  2009,  2018,  2019,  2020,  2021 Some of the key advantages for Honda can be a great EV market giant compared with startups and OEMs due to the following: Charging facilities in service stations: As Honda has 334+ service stations [1] across various states in India, the majority of them are bigger compared to other two-wheeler service stations. So a large charging infrastructure network and fa...
Read more

Solar Cell efficiency with new polymer devices

By -
Image
India is witnessing a new chapter in the growth of the renewable sector, mainly in the solar sector. Hence, any new breakthrough in the field of solar cells and solar power generation is beneficial for India. New technology is being developed in the University of Chicago within the confines of its chemistry laboratory by Professor “Luping Yu”. A new kind of solar panel was designed and manufactured which has a higher efficiency when compared with the currently running modules used for power generation. The given polymer solar cell consists of a new polymer, called "PID2". The new polymer improves the efficiency of electrical power generation by 15 per cent when added to a standard polymer-fullerene mixture. New light has been shed on solar power generation using devices made with polymers. Researchers identified a new polymer a type of large molecule that forms plastics and other familiar materials which improved the efficiency of solar cells. The group also determined th...
Read more

Achieving 175 GW RE Target by INDIA With Extended 450 GW BY 2030 Ambitious Target

By -
Image
The Indian government has kept a target of 175 GW installed capacity using different renewable energy technologies in the country. Currently, the total installed capacity of the country is 367.3 GW of which thermal is 230.72 GW , Nuclear is 6.78 GW , Hydro is 45.4 GW and RE is 84.4 GW as on 31.12.2019. For the month of December 2019 the electricity generated in different power segments is 86.1 BU in thermal, 3.6 BU in Nuclear, 8.9 BU in Hydro and 9.3 BU in RE [1] . Currently, the total renewable installed capacity is 57.472 GW ( 12.5 GW of solar i.e., 21.8% and 32.3 GW of wind i.e., 56.2% ).  Depending upon the current installation frequency, we can forecast whether we can reach the target by 2022 or 2030 . MNRE is exploring with new innovative approach for increasing the capacity of renewable energy in the country and promoting them for the same. [2] Benefits with 175 GW RE target   Reduces the carbon footprints in the country and promotes renewable energy tech...
Read more