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

Voice clone-AI

Pradhan Mantri Suryodaya Yojana

06 Feb, 24
SHARE

Recently, Prime Minister announced Pradhan Mantri Suryodaya Yojana under which 1 crore households will get rooftop solar power systems. India’s Status of Current Solar Capacity India currently stands at 4th place globally in solar power capacity. As per Ministry of New an

Foreign Contribution Regulation Act (FCRA)- NGO

06 Feb, 24
SHARE

The Foreign Contribution Regulation Act, 2010 (FCRA) registration of two prominent non-governmental organisations (NGOs) — Centre for Policy Research (CPR) and World Vision India (WVI) have been cancelled this month. What is FCRA? Key provisions of FCRA, 2010 Key aspects Description

Voice clone-AI

06 Feb, 24
SHARE

Voice clone fraud has been on the rise in India. AI voice cloning – It is the process of creating a synthetic replica of a person’s voice through machine learning and speech synthesis technology.It is called as voice deepfakesor audio deepfakes. Objective – To achieve a high level of na

Science communication- how to promote

06 Feb, 24
SHARE

Steps taken by India to promote Science Communication Publications and Information Directorate (PID) - An organisation under Council of Science and Industrial Research (CSIR) established in 1951 for publishing and disseminating scientific information in India. National science magazines- The PI

Universal Basic Income (UBI)- Analysis

05 Feb, 24
SHARE

Universal Basic Income (UBI) can strengthen welfare architecture and unlock the nation’s latent demographic potential. UBI - It is an income support mechanism typically intended to reach all or a very large portion of the population regardless of their earnings or employment status. Objective- To provide enough to co