 "Punjab becomes seventh state to sign up for UDAY")
Punjab today became seventh state to join Uday, the debt restructuring scheme for power distribution companies. The Union government, the state of Punjab and the Punjab State Power Corporation Limited (PSPCL) today signed a memorandum of understanding (MoU) for operational and financial turnaround of discoms.
Speaking on the occasion, Union Power Minister Piyush Goyal said Punjab would be highly benefitted by the Uday especially the farmers and the industrialists. He also assured that the Power Ministry is in discussion with the Punjab government about replacing all old water pumps with the improved, technologically advanced and energy efficient ones in the state.
Punjab chief minister Sukhbir Singh Badal said Uday would be tackling total discom debt of Rs 20,838 crore and thus revive the power sector of the state.The combined discom debt that would be restructured in respect of these states is around Rs 1.6 lakh crore, which is approximately 37 per cent of the total outstanding discom debt of Rs.4.3 lakh crore as on 30th September, 2015.
The Government of Punjab would take over Rs 15,628 crore of discom debt, being 75 per cent of the total discom debt of Rs 20,838 crore outstanding as on September 30, 2015. The Uday scheme also provides for the balance debt of Rs 5,210 crore. to be re-priced or issued as State guaranteed discom bonds, at coupon rates around 3 per cent less than the average existing interest rate. The annual saving in the interest cost to the State would be around Rs.625 crore on account of restructuring of the discom debt.
Besides trying to support the discom financially, the MoU paves way for further improving operational efficiency of the already efficient discom. Through compulsory Distribution Transformer metering, consumer indexing & GIS mapping of losses, upgrade/change transformers, meters etc., smart metering of high-end consumers, feeder audit etc.
AT&C losses and transmission losses would be brought down, besides eliminating the gap between cost of supply of power and realisation. The reduction in AT&C losses and transmission losses to 14 per cent and 2.5 per cent, respectively is likely to bring additional revenue of around Rs 1,600 crore during the period of turnaround.
The measures would help save interest cost of around Rs 60 crore to the discoms. PSPCL takes care of the power distribution activity of Punjab.
While efforts will be made by the State Government and the discom to improve the operational efficiency of the discom, and thereby reduce the cost of supply of power, the Central government would also provide incentives to the discoms and the State Government for improving Power infrastructure in the State and for further lowering the cost of power.
The Central schemes such as DDUGJY, IPDS, Power Sector Development Fund or such other schemes of MOP and MNRE are already providing funds for improving Power Infrastructure in the State and additional/priority funding would be considered under these schemes, if the State/discoms meet the operational milestones outlined in the scheme.
The Centre would also support the state through additional coal at notified prices and in case of availability through higher capacity utilization, low cost power from NTPC and other CPSUs. Other benefits such as coal swapping, coal rationalization, correction in coal grade slippage, availability of 100% washed coal would help the state to further reduce the cost of Power. The State would gain around Rs.1250 crore. due to these coal reforms.
Demand side interventions in Uday such as usage of energy-efficient LED bulbs, agricultural pumps, 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 State of Punjab. The gain is expected to be around Rs 690 crore.
An overall net benefit of approximately Rs 5,475 crore would accrue to the State by opting to participate in Uday, by way of savings in interest cost, reduction in AT&C and transmission losses, interventions in energy efficiency, coal reforms etc. during the period of turnaround, said a official press release.
The ultimate benefit of signing the MoU would go to the people of Punjab. Reduced levels of transmission and AT&C losses would mean lesser cost per unit of electricity to consumers.
Further, financially and operationally healthy discom would be in a position to supply more power. Higher demand for power from discom would mean higher PLF of generating units and, therefore, lesser cost per unit of electricity which would again mean lesser cost per unit of electricity to the consumers.
Speaking on the occasion, Union Power Minister Piyush Goyal said Punjab would be highly benefitted by the Uday especially the farmers and the industrialists. He also assured that the Power Ministry is in discussion with the Punjab government about replacing all old water pumps with the improved, technologically advanced and energy efficient ones in the state.
Punjab chief minister Sukhbir Singh Badal said Uday would be tackling total discom debt of Rs 20,838 crore and thus revive the power sector of the state.The combined discom debt that would be restructured in respect of these states is around Rs 1.6 lakh crore, which is approximately 37 per cent of the total outstanding discom debt of Rs.4.3 lakh crore as on 30th September, 2015.
The Government of Punjab would take over Rs 15,628 crore of discom debt, being 75 per cent of the total discom debt of Rs 20,838 crore outstanding as on September 30, 2015. The Uday scheme also provides for the balance debt of Rs 5,210 crore. to be re-priced or issued as State guaranteed discom bonds, at coupon rates around 3 per cent less than the average existing interest rate. The annual saving in the interest cost to the State would be around Rs.625 crore on account of restructuring of the discom debt.
Besides trying to support the discom financially, the MoU paves way for further improving operational efficiency of the already efficient discom. Through compulsory Distribution Transformer metering, consumer indexing & GIS mapping of losses, upgrade/change transformers, meters etc., smart metering of high-end consumers, feeder audit etc.
AT&C losses and transmission losses would be brought down, besides eliminating the gap between cost of supply of power and realisation. The reduction in AT&C losses and transmission losses to 14 per cent and 2.5 per cent, respectively is likely to bring additional revenue of around Rs 1,600 crore during the period of turnaround.
The measures would help save interest cost of around Rs 60 crore to the discoms. PSPCL takes care of the power distribution activity of Punjab.
While efforts will be made by the State Government and the discom to improve the operational efficiency of the discom, and thereby reduce the cost of supply of power, the Central government would also provide incentives to the discoms and the State Government for improving Power infrastructure in the State and for further lowering the cost of power.
The Central schemes such as DDUGJY, IPDS, Power Sector Development Fund or such other schemes of MOP and MNRE are already providing funds for improving Power Infrastructure in the State and additional/priority funding would be considered under these schemes, if the State/discoms meet the operational milestones outlined in the scheme.
The Centre would also support the state through additional coal at notified prices and in case of availability through higher capacity utilization, low cost power from NTPC and other CPSUs. Other benefits such as coal swapping, coal rationalization, correction in coal grade slippage, availability of 100% washed coal would help the state to further reduce the cost of Power. The State would gain around Rs.1250 crore. due to these coal reforms.
Demand side interventions in Uday such as usage of energy-efficient LED bulbs, agricultural pumps, 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 State of Punjab. The gain is expected to be around Rs 690 crore.
An overall net benefit of approximately Rs 5,475 crore would accrue to the State by opting to participate in Uday, by way of savings in interest cost, reduction in AT&C and transmission losses, interventions in energy efficiency, coal reforms etc. during the period of turnaround, said a official press release.
The ultimate benefit of signing the MoU would go to the people of Punjab. Reduced levels of transmission and AT&C losses would mean lesser cost per unit of electricity to consumers.
Further, financially and operationally healthy discom would be in a position to supply more power. Higher demand for power from discom would mean higher PLF of generating units and, therefore, lesser cost per unit of electricity which would again mean lesser cost per unit of electricity to the consumers.