27 June 2016 Current Affairs: The government of 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.
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 Centre, the state and the discoms of Andhra Pradesh ,APSPDCL and APEPDCL has signed a Memorandum of Understanding (MOU) under the 'Ujwal DISCOM Assurance Yojana' (Uday) in Vijayawada, Andhra Pradesh.
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.
UDAY Scheme : Ujwal DISCOM Assurance Yojana (UDAY) is the financial turnaround and revival package for electricity distribution companies of India (DISCOMs).DISCOMs in the country have accumulated losses of approximately Rs. 3.8 lakh crore and outstanding debt of approximately Rs. 4.3 lakh crore (as on March, 2015).
The scheme comprises four initiatives - improving operational efficiencies of discoms, reduction of cost of power, reduction in interest cost of discoms and enforcing financial discipline on discoms through alignment with state finances.
It allows state governments, which own the discoms, to take over 75 percent of their debt as of September 30, 2015, and pay back lenders by selling bonds. Discoms are expected to issue bonds for the remaining 25 percent of their debt.