The government today said Andhra Pradesh has joined the Uday scheme, meant for revival of debt-laden discoms, and an overall net benefit of about Rs 4,400 crore will accrue to the state.
"Today, Andhra Pradesh has signed an MoU as the thirteenth state to be covered under Uday," Power Ministry said in a statement, adding that "an overall net benefit of approximately Rs 4,400 crore would accrue to the state by opting to participate in Uday."
The statement further said that the Centre, the state and the discoms of Andhra Pradesh -- APSPDCL and APEPDCL -- today signed a Memorandum of Understanding (MOU) under the 'Ujwal DISCOM Assurance Yojana' (Uday) in Vijayawada, Andhra Pradesh.
Speaking on the occasion, Power Minister Piyush Goyal said Andhra Pradesh is one of the top three states for achieving 100 per cent electrification. The other two are Gujarat and Punjab.
Chief Minister N Chandrababu Naidu said the government is committed to uninterrupted and quality power supply.
Andhra Pradesh has committed to take over discoms' debt of Rs 11,000 crore during the current year, which would reduce the interest burden of the state by Rs 330 crore per annum.
Through compulsory Distribution Transformer metering, consumer indexing and GIS mapping of losses, upgrade/change of transformers and meters, smart metering of high-end consumers and feeder audit, AT&C losses and transmission losses would be brought down, besides eliminating the gap between cost of supply of power and realisation.
The reduction in AT&C losses of APEPDCL to 5.44 per cent and that of APSPDCL to 10.89 per cent and transmission losses of the state to 3.50 per cent is likely to bring additional revenue of around Rs 214 crore during the period of turnaround.
Goyal had said Uday bonds worth over Rs 1.5 lakh crore have been issued so far.