Weekly Current Affairs

Notice

  1. Government of India signed a Memorandum of Understanding (MOU) with Government of Maharashtra and Maharashtra State Electricity Distribution Co. Ltd. (MSEDCL) under the Ujwal DISCOM Assurance Yojana (UDAY).  
  2. Under UDAY, sixteen states/UT have already signed the MoU till date, Maharashtra being the seventeenth.
  3.  The combined DISCOM debt, including Central PSU dues, that would be restructured in respect of these states is around Rs. 2.57 lakh crores, which is around 68% of the total outstanding DISCOM debt.
  4.   An overall net benefit of approximately Rs. 9,725 crores would accrue to Maharashtra by opting to participate in UDAY, by way of cheaper funds, reduction in AT&C losses, interventions in energy efficiency, coal reforms etc., during period of turnaround.
  5. Under UDAY, Maharashtra Government has committed to take over 75% of DISCOM’s non-capex debt of around Rs. 6,600 crores during the current year.
  6.  Balance 25% of such debt remaining with the DISCOM would be converted into Bonds or repriced at cheaper rates. This would reduce the interest burden of the State/DISCOM by Rs. 595 crores.
  7. Through compulsory Distribution Transformer metering, consumer indexing & GIS mapping of losses, upgrade/change transformers & meters, smart metering of highend consumers, feeder audit, among other steps, AT&C losses and transmission losses would be brought down, besides eliminating the gap between cost of supply of power and realisation.
  8. Central schemes such as Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY), Integrated Power Development Scheme (IPDS), Power Sector Development Fund or such other schemes of Ministries of Power and New & Renewable Energy are providing funds for improving Power Infrastructure in State.
  9.   Demand Side interventions in UDAY such as usage of energy-efficient LED bulbs, agricultural pumps, fans & air-conditioners and efficient industrial equipment through Perform, Achieve, Trade (PAT) would help in reducing peak load, flatten load curve and thus help in reducing energy consumption in State. 
  10. Improvement in operation efficiency would enable the DISCOM to borrow at cheaper rates in future, for their infrastructure development and improvement of existing infrastructure.
  11.  Ultimate benefit of signing the MOU would go to the people of Maharashtra. Reduced levels of transmission and AT&C losses would mean lesser cost per unit of electricity to consumers.
  12. Further, financially and operationally healthy DISCOM would be in a position to supply more power.