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UDAY scheme was touted as the next paladin to bail out the struggling Discoms, in order to turn them green in a time horizon of 3-4 years from 2015/16. Though was optional for the states, as of now 27 States/UTs are on board and INR 2,32,163 Crore of bonds have been issued which accounts for 85% of the debt to be restructured under this scheme. The cumulative AT&C* Loss stands at 20.42% with ACS-ARR Gap of INR 0.45/kWh. Also, tariff revision of 25 states have been done out of participating states.
With power distribution reforms gained momentum soon after the application of EA 2003 (where it was believed to be coined in mid 90’s) , Indian power distribution utilities came along way since then. With, introduction of reforms and multiple cognitive steps undoubtedly the power distribution sector stands improved by leaps from the erstwhile levels. Having said that, it indeed still represents the weakest link of the power generation, transmission and distribution chain. With, India having most of the discoms run as state authorities the pedigree for operational efficiencies and achievement of targeted revenue remains a seldom site. Barring Gujarat and few discoms of southern states the degree of AT&C loss levels decline over the past decade remains elusive. For sure, states like Rajasthan , Madhya Pradesh and Maharashtra have depicted remarkable improvement but still owing to the large area of operations and the consumer handled thereof consistently tests the revenue cycle for the utilities.