Govt issues detailed guidelines to revamp discoms

28 Jul 2021 CW Team

To reform the result-linked power distribution program for the upcoming five years, the Ministry of Power (MoP) has announced detailed guidelines.

The program targets to enhance the quality and the security of power supply to consumers by an operationally effective distribution area and which is sustainable financially.

The plan is to decrease the aggregate technical and commercial (AT&C) losses over India to 12-15% and reduce the gap between the aggregate revenue and the average cost of supply by 2024-25.

As per the MoP, the cost for the program is Rs 3.03 trillion, including the budgetary provision of Rs 976.31 billion from the Indian government.

The nodal companies responsible for executing the program over India would be Power Finance Corporation Limited and REC Limited.

States and their distribution companies (discoms) need to sign a tripartite agreement with the central government to avail of the benefits under the program.

An inter-ministerial monitoring committee would be formed under the MOPs Secretary chairmanship. The monitoring committee would design and allow every action plan and detailed project report (DPR) of discoms/states and observe the program's execution.

Finance Minister, Nirmala Sitharaman, announced the Covid-19 economic relief package and revealed different sops for discoms, including Rs 3.03 trillion, the cost for reform-based result-linked power distribution program.

The program will consist of the Deendayal Upadhyaya Gram Jyoti Yojana (DDUGJY), Integrated Power Development Scheme (IPDS), and the Prime Minister’s Development Package (PMDP)- 2015 for Jammu & Kashmir, and the profits of the gross budgetary support of nearly Rs 170 billion.

The range of the program is split into two parts. Part-A consists of financial aid for the up-gradation of the infrastructure, metering system, and prepaid metering.

Part-B comprises training capacity building and additional supporting and enabling activities.

Image Source

Also read: Ministry of Power announces ninth yearly ratings for state discoms

To reform the result-linked power distribution program for the upcoming five years, the Ministry of Power (MoP) has announced detailed guidelines. The program targets to enhance the quality and the security of power supply to consumers by an operationally effective distribution area and which is sustainable financially. The plan is to decrease the aggregate technical and commercial (AT&C) losses over India to 12-15% and reduce the gap between the aggregate revenue and the average cost of supply by 2024-25. As per the MoP, the cost for the program is Rs 3.03 trillion, including the budgetary provision of Rs 976.31 billion from the Indian government. The nodal companies responsible for executing the program over India would be Power Finance Corporation Limited and REC Limited. States and their distribution companies (discoms) need to sign a tripartite agreement with the central government to avail of the benefits under the program. An inter-ministerial monitoring committee would be formed under the MOPs Secretary chairmanship. The monitoring committee would design and allow every action plan and detailed project report (DPR) of discoms/states and observe the program's execution. Finance Minister, Nirmala Sitharaman, announced the Covid-19 economic relief package and revealed different sops for discoms, including Rs 3.03 trillion, the cost for reform-based result-linked power distribution program. The program will consist of the Deendayal Upadhyaya Gram Jyoti Yojana (DDUGJY), Integrated Power Development Scheme (IPDS), and the Prime Minister’s Development Package (PMDP)- 2015 for Jammu & Kashmir, and the profits of the gross budgetary support of nearly Rs 170 billion. The range of the program is split into two parts. Part-A consists of financial aid for the up-gradation of the infrastructure, metering system, and prepaid metering. Part-B comprises training capacity building and additional supporting and enabling activities. Image Source Also read: Ministry of Power announces ninth yearly ratings for state discoms