Union Government and Chhattisgarh Government on 25 January 2016 signed a Memorandum of Understanding (MoU) with Chhattisgarh State Power Distribution Company Limited (CSPDCL) under the Scheme Ujwal DISCOM Assurance Yojana (UDAY) for operational and financial turnaround of the CSPDCL.
Features of the MoU
• The Chhattisgarh Government will take over 75 percent of the outstanding debt of CSPDCL as existing on 30 September 2015
• The balance 25 percent debt will be re-priced or issued as State guaranteed DISCOM bonds, at coupon rates around 3 percent less than the average existing interest rate.
• Through UDAY, Chhattisgarh government and CSPDCL would bring about operational efficiencies through compulsory feeder and Distribution Transformer metering, consumer indexing and increased power supplies in areas with reduced Aggregate Technical and Commercial (AT&C) losses among others.
• Chhattisgarh government committed to improve the Billing efficiency from 79.27 percent in financial year 2016 to 85.28 percent in financial year 2019.
• Similarly, the gap between Average Cost of Supply (ACS) and Average Revenue Realization (ARR) of 0.35 rupees per unit in financial year 2015 would also be eliminated.
• Chhattisgarh government would extend a graded Operational funding requirement (OFR) support of 450 crore rupees in financial year 2016 and 350 crore rupees in the financial year of 2017 to CSPDCL, to ensure smooth cash flow, till the DISCOM achieves turnaround.
• Union government would provide incentives to the DISCOMs and the State government, aimed at improving Power infrastructure growth in the State and lowering the cost of power.
• Chhattisgarh government would get additional/priority funding through the Central schemes such as DDUGJY, IPDS, Power Sector Development Fund or such other schemes of MOP and MNRE, if they meet the operational milestones outlined in the scheme.
Benefits for the People of Chhattisgarh
Increased demand for power from DISCOM would mean higher plant load factor of generating units and therefore, lesser cost per unit of electricity thereby benefitting consumers.
The scheme would allow speedy availability of power to around 885 villages and 9.88 lakh households in Chhattisgarh that are still without electricity.
Availability of 24X7 power to hitherto unconnected villages/households etc. would increase the economic activity and improve employment opportunities, which would reduce the influence of extremist and maoist ideologies in the State, restoring normalcy of life and further accelerate the economic growth of the State.
The Scheme UDAY was launched by the Union government on 20 November 2015 to ensure a sustainable solution to enable the distribution utilities across the country to break out of a long standing debt of almost 4.3 Lakh crore rupees.
Sustainability of operational and financial performance is at the CORE of UDAY.
Demand Side interventions in UDAY such as usage of energy- efficient LED bulbs, fans & air-conditioners and efficient industrial equipment through PAT (Perform, Achieve, Trade) would help in reducing peak load, flatten load curve and thus help in reducing energy consumption in the States.
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When: 25 January 2016