Uttarakhand joins UDAY scheme, to save Rs 962 cr

Uttarakhand became the 10th state to join UDAY scheme meant for revival of discoms, a move which will help it save Rs 962 crore during the turnaround period.
"The Government of India, Uttarakhand and Uttarakhand Power Corporation Ltd (UPCL) which takes care of the power distribution activity of the state signed Memorandum of Understanding (MOU) under the Scheme UDAY - Ujwal DISCOM Assurance Yojana - on March 31, 2016 for operational turnaround of the DISCOM," the Power Ministry said in a press release.
An overall net benefit of about Rs 962 crore would accrue to the state by opting to participate in UDAY, reduction in AT&C and transmission losses, interventions in energy efficiency and so on during the period of turnaround, it said.

Under UDAY, 10 states have signed MoU till date. The combined DISCOM debt that would be restructured in respect of these states is around Rs 1.96 lakh crore, which is about 45 per cent of the total outstanding DISCOM debt of Rs 4.3 lakh crore as on September 30, 2015.
As per the MoU, the reduction in AT&C losses and transmission losses to 14.50 per cent and 1.78 per cent respectively is likely to bring additional revenue of around Rs 645 crore during the period of turnaround.
Demand Side interventions in UDAY such as usage of energy-efficient LED bulbs, agricultural pumps, fans & air-conditioners and efficient industrial equipment through PAT (Perform, Achieve, Trade) will help reduce peak load, flatten load curve and thus help in reducing energy consumption in the State of Uttarakhand.

The gain is expected to be around Rs 303 crore.