New power scheme to replace UDAY

Syllabus subtopic: Government Policies and Interventions for Development in various sectors and Issues arising out of their Design and Implementation

Prelims and Mains focus: about the new scheme to be launched and how is it going to be a game changer for discoms and consumers; about UDAY and its shortcomings

News: The upcoming Budget is likely to introduce a new scheme directed at the power sector that would replace the NDA government’s earlier scheme, UDAY, which had floundered in its attempt to revive the country’s power distribution companies (discoms).

Background

UDAY, launched in 2015, was aimed at reviving ailing state power discoms and make them operationally and financially efficient through various measures, like reducing aggregate technical and commercial (AT&C) losses to 15 per cent by FY2019. The losses had come down to 18.79 per cent. The new scheme aims to achieve this 15 per cent target.

About the new scheme

The project would combine elements of strengthening the distribution system and the trajectory of loss reduction of UDAY.

Now it will be conditional — if states follow the trajectory of loss reduction, the central govt. will give them the money for strengthening the system. UDAY envisaged that the development funds will be conditional, but it was never implemented.

The new scheme is also expected to contain a plan to diversify power distribution across the country by moving from a mostly state-owned discom system to one where private firms would be allowed franchises to supply electricity to consumers. This would ensure competition and better service and would also ensure timely collection of money for the power distributed.

The govt. has suggested that the new set of reforms would be stricter in its implementation.

Source: Indian Express

Join Our Telegram

Oceanic Anoxic Event 1a and MASS EXTINCTION

Oceanic Anoxic Event 1a and MASS EXTINCTION

25 Dec, 24
SHARE

Oceanic Anoxic Event 1a from the Paris Basin (Environment) Paper-3 PMP OAE 1a refers to a period during the Cretaceous Period (145 million years ago and ended 66 million years ago) when Earth's oceans became depleted of oxygen, causing a significant disruption in marine life. Cause: The event is believed to have been

Viksit Panchayat Karmayogi (Good governance)

26 Dec, 24
SHARE

Viksit Panchayat Karmayogi (Good governance) Governance GS PAPER-2 PMP Dr. Jitendra Singh launched the ‘Viksit Panchayat Karmayogi’ initiative on Good Governance Day, celebrated to mark the 100th birth anniversary of former Prime Minister Atal Bihari Vajpayee. The initiative, which is part of the broader ‘Prashasan Gaon

Major programmes to control Air Pollution

23 Dec, 24
SHARE

Major programmes to control Air Pollution National Clean Air Programme? It was launched by the Ministry of Environment, Forests and Climate Change (MoEFCC) in January 2019. It is the first-ever effort in the country to frame a national framework for air quality management with a time-bound reduction target. The

Air pollution and Air quality Measures in India

21 Dec, 24
SHARE

Air pollution and Air quality Measures in India (Environment) GS Paper-3 P-M-P Air pollution may be defined as the presence of any solid, liquid or gaseous substance including noise and radioactive radiation in the atmosphere in such concentration that may be directly and/or indirectly injurious to humans or other l

Geopolitical Significance of Ports

20 Dec, 24
SHARE

Geopolitical Significance of Ports (IR) Act as geopolitical assets: Ports enhance the projection of strategic reach, which helps strengthen the country’s control over important sea and energy supply routes. E.g. Indian Navy’s staging base at Agalega Islands will enable marine patrols