Question : Ujjwal DISCOM Assurance Yojana

(a) whether Ujjwal DISCOM Assurance Yojana (UDAY) launched in November, 2015 has succeeded in meeting its objectives for financial turnaround and revival for the State-owned, debt-ridden electricity distribution companies of India and if so, the details thereof;

(b) the number of States succeeded in bringing down the gap between average cost of supply and average revenue realized to zero;

(c) whether the Government plans to come up with Ujjwal DISCOM Assurance Yojana (UDAY)-2.0;

(d) if so, the details thereof and if not, the reasons therefor;

(e) whether the Government proposes to include steps to ensure monitoring of short-term borrowings by DISCOMs, regular payments for them and one methodology to measure Aggregate Technical and Commercial (AT&C) losses; and

(f) if so, the details thereof and if not, the reasons therefor?

Answer given by the minister

THE MINISTER OF STATE (INDEPENDENT CHARGE) FOR POWER, NEW & RENEWABLE ENERGY AND THE MINISTER OF STATE FOR SKILL DEVELOPMENT & ENTREPRENEURSHIP

( SHRI R.K. SINGH)

(a) & (b) : Under Ujwal Discom Assurance Yojana (UDAY), Aggregate Technical & Commercial (AT&C) loss and Average cost of supply(ACS)- Average revenue realized(ARR) Gap are two important outcome parameters. The AT&C loss and ACS-ARR gap for UDAY States/UTs for FY 16 were 23.96% and 48 paise per unit respectively. As per the audited/ certified data available, the AT&C and ACS-ARR gap in FY 18 are 22.31% and 30 paise per unit respectively and as per the provisional data provided by states on UDAY portal, the AT&C and ACS-ARR gap in FY 19 are 18.19% and 27 paise per unit respectively. Seven (07) states namely Assam, Gujarat, Haryana, Himachal Pradesh, Karnataka, Maharashtra and Rajasthan have provisionally reported ACS-ARR gaps as zero or better in FY 2018-19.

(c) & (d) : While electricity is a concurrent subject, the Distribution of electricity including operational and financial efficiencies of Distribution utilities is being handled by the states. The Government of India has indicated through the Budget speech of 2020-21 its commitment to continue DISCOM reforms in wake of their financial stress

(e) & (f): Monitoring of performance of DISCOMs is a continuous process, which includes monitoring of all financial and operational efficiency parameters made available by the states. The Central Electricity Authority (CEA) has circulated a standard methodology for calculation of AT&C losses in August, 2018 to all concerned stakeholders.


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