Sikkim becomes 22nd State to join UDAY
Sikkim became 22nd state in the country to join Union Government’s Ujwal DISCOM Assurance Yojana (UDAY).
In this regard, Central Government and the state government have signed MoU for operational improvement of Sikkim’s Power Distribution Department.
Key Facts
- The MoU paves way to improve operational efficiency of the Power Distribution department of the State. It will derive an Overall Net Benefit of approximately Rs. 356 crores to the state.
- AT&C losses and transmission losses in the state will be brought down through compulsory distribution transformer metering, consumer indexing & GIS mapping of losses, upgrading transformers, meters etc.
- Besides, smart metering of high-end consumers, feeder audit etc, eliminating the gap between cost of supply of power and realisation will also aid to reduce loses.
About Ujwal DISCOM Assurance Yojna (UDAY)
- UDAY Scheme was launched by Union Ministry of Power for financial restructuring of debt of power distribution companies.
- It aims for financial revival and turnaround of Power Distribution companies (DISCOMs) and also ensures a sustainable permanent solution to the problem.
- By becoming part of it, states power DISCOMs can convert their debt into state bonds as well as roll out number of measures to improve efficiency at power plants.
- It seeks to make DISCOMs financially and operationally healthy so that they can supply adequate power at affordable rates and play important role in Government’s ambition of meeting target of 100% Village electrification and 24X7 Power For All.
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Month: Current Affairs - February, 2017