UDAY Scheme for DISCOMs: About, Significance, Objectives and More Details

The UDAY scheme was announced by the Government of India on November 15, 2015, to help Electrical Distribution Corporations (DISCOMs) controlled by any government improve their performance and profitability. This scheme was created to make power affordable and accessible to everyone, 24 hours a day, seven days a week. The UDAY initiative also intends to provide a remedy for both revenue- and cost and efficiency.

UDAY Scheme: Objectives

The Ujwal DISCOM Assurance Yojana (UDAY) was initially launched in November 2015 by Piyush Goyal, Minister responsible for Power and New Renewable Energy Energy. This programme covers approximately 32 states/union territories.

The UDAY programme proposes a yearly tariff rise, monthly fuel cost adjustments, interest burden reductions, coal price rationalisation, fuel cost mitigation through coal switching, moment reducing losses, and other measures.

The following are some of the key goals of the UDAY programme:

By 2018-19, the Ujwal DISCOM Assurance Yojana (UDAY) aims to reduce average commercial and technical losses from roughly 22% to 15%, as well as close the gap between income and price supplies.

Mandatory smart monitoring, inverter and metre upgrades, and other measures to improve operational efficiencies Energy efficiencies initiatives, such as the marketing of economical LED lamps, irrigation pumps, fans, and air conditioners, will also be implemented.

Reduced power costs, debt burden, and power failure in the distribution network, as well as improved DISCOM operating excellence for the supply of necessary electricity at reasonable prices.

UDAY is a debt relief scheme for DISCOMs that is also available to states.

UDAY Scheme: Advantages For Partner States

1. Using central support, power costs can be reduced.
2. Rising domestic coal supply.
3. Coal links are allocated at predetermined pricing.
4. Rationing of coal prices
5. Coal linkage optimization and coal swaps are now possible.
6. Coal that has been washed and crushed is available.
7. Additional coal at the agreed-upon price National Transmitters are being built at a faster pace.
8. A clear price war gives you the power to buy what you want.