UP to issue bonds worth Rs 40,000 cr to discoms under UDAY

Industry suggests smart metering to cut discom losses

In the backdrop of Uttar Pradesh (UP) making budgetary provisions of Rs 40,000 crore to issue bonds to the power distribution companies (discoms) under Ujjwal Discom Assurance Yojna (UDAY), the industry has urged the state government to adopt 'smart metering' to cut losses.

UDAY is a flagship scheme of the National Democratic Alliance (NDA) government at the Centre for the financial restructuring of the country's ailing discoms, which have collectively accumulated losses of Rs 3,60,000 crore due to inefficient transmission and distribution of energy.

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In UP, the aggregate technical and commercial (AT&C) are to the tune of over 30 per cent, which suggests inefficient discoms, rampant power theft, low bill realisation and corruption. AT&C losses are sum of technical loss, commercial loss and shortage due to non-realisation of total billed amount. It includes power theft and losses during transmission and distribution of power.

"The discoms should minimise human intervention to cut losses through smart metering, including remote metering and installing meters at the power transformers as well," Indian Electrical and Electronics Manufacturers' Association (IEEMA) immediate past president Vishnu Agarwal told the media here.

He said the technology was already available in India and was being used under a pilot project in some states, including West Bengal and Manipur.

UP Power Corporation Limited (UPPCL) is also mulling installing pre-paid meters in the state.

IEEMA claimed with UP signing up for UDAY, a savings of nearly Rs 33,000 crore would accrue to its discoms and help UPPCL in raising cheaper funds for their future capital investment requirement.

IEEMA had also organised an interactive session on 'Making UDAY Happen' with senior central and state government officials, including union coal secretary Anil Swarup, UP energy principal secretary Sanjay Agrawal and UPPCL managing director A P Mishra.

Due to the high AT&C losses, UP routinely faces energy demand-supply chasm, which results in power outages, especially in rural areas and smaller towns. The state government is now targetting to tame this figure to under 10 per cent by 2017.

Founded in 1948, IEEMA has over 800 member industries encompassing the complete value chain in power generation, transmission and distribution equipment.