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Center signs 4 MoUs with states/UTs under UDAY scheme

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On November 20, 2017, Government of India signed four Memorandums of Understanding (MoUs) under Ujwal DISCOM Assurance Yojana (UDAY) Scheme with Nagaland, Andaman & Nicobar Islands, Dadra & Nagar Haveli & Daman & Diu.

More Information about 4 MoUs with States/UTs under UDAY scheme:

  • It is to be noted that November 20, 2017 was the 2ndAnniversary of Ujwal DISCOM Assurance Yojana (UDAY).
  • Nagaland, Andaman & Nicobar Islands, Dadra & Nagar Haveli& Daman & Diu have joined UDAY scheme only for operational improvement and shall not undergo financial restructuring as per the basic framework of UDAY scheme.
  • As per the terms of the MoU, Nagaland, Andaman & Nicobar Islands, Dadra & Nagar Haveli& Daman & Diu have  will now have access to cheaper funds for capital expenditure, reduction in Aggregate Technical and Commercial (AT&C) and Transmission losses, interventions in energy efficiency, etc. during the period of turnaround.
  • These measures will result in benefits of approximately Rs. 551 crore (Nagaland), Rs. 18 crore (Andaman & Nicobar Islands), Rs. 13 crore (Dadra & Nagar Haveli) and Rs. 10 crore(Daman & Diu).
  • AT&C and Transmission losses will be reduced by adopting measures such as compulsory distribution transformer metering, upgrade/change of transformers and meters, consumer indexing & GIS mapping of losses, smart metering of high-end consumers and feeder audit.
  • These steps aimed at improving operational efficiencies will not only reduce the cost of supply of power but will also help States/UTS to fetch incentives from Central Government for improving power infrastructure.

Quick Facts about UDAY Scheme:

  • It was approved and launched in November 2015.
  • This scheme envisages financial turnaround and revival of Power Distribution companies (DISCOMs) in States/Union Territories.
  • Including these latest four MoUs, 27 States and 4 Union Territories have joined UDAY scheme till date.