The Budget offered a second chance to support an ailing state-owned discom with Finance Minister Nirmala Sitharaman announcing a Rs 3,05,982 crore outlay. Sitharaman said a revamped, result-linked scheme for five years would be launched for the
Officials said as the name suggests, the scheme will strictly follow the “result-linked” part wherein fund disbursement would be a factor of improvement by discoms
– financially and operationally.
State-owned discoms across the country are beleaguered despite four reform schemes in 15 years. UDAY concluded in FY20 with most of the states failing to meet their stipulated targets and still in red.
The Aggregate Technical & Commercial (AT&C) losses or power supply losses due to inefficient systems were supposed to come down to 15 per cent and average cost-revenue (ACS-ARR) gap of discoms, down to zero by FY20. However, AT&C losses currently stand at 23.9 per cent and cost-revenue gap at 0.53 paisa, according to the UDAY portal. The numbers are the national average of last available data of all discoms of FY20 and indicative data of six states during Q1FY21.
The highest fund allocation is for the improving power supply infrastructure which includes automation at the discoms’ end, removal of overhead electric cables, reduction in power theft and transmission loss.
The discoms would also have formulate plan to segregate agriculture power supply feeders and solarise the ones supplying for irrigation. Originally under the KUSUM scheme for solarising agriculture, the Centre is looking to make it part of the reforms package.
The fund allocation for the all existing power sector
schemes would be subsumed into one. DDUGJY for rural power reforms and IPDS for urban areas would be part of this new umbrella scheme. The fund allocation made to these schemes would be disbursed according to the plan submitted by the states.