Punjab, now a part of UDAY

UDAY – Ujwal DISCOM assurance Yojna, is a scheme launched by the Indian Government to manage the operational and financial turnaround of the DISCOMs. Today, the state of Punjab along with Punjab State Power Corporation Limited has signed a Memorandum of Understanding to participate in this yojna.

Piyush Goyal, the Union Minister for State for Power, who was present at the ceremony said that this scheme will be highly beneficial for the state, as it is a hub of farmers as well as industrialists, and they can very well use it for their bright future. He said that along with reviving the power sector of the state, he will also make sure that all the old water pumps should be replaced with the new ones which are power saving as well as technologically advanced.

On the other hand, Sukhbir Singh Badal said that UDAY will very well take care of the entire DISCOM debt, which currently stands at Rs. 20, 838 crore. The Punjab Government will take possession of 75 percent of this entire amount, to take this scheme forward. The scheme further provides for the remaining 25%, which is to be re-priced as State Guaranteed DISCOM bonds and sold at a less price than the current interest rate in the market. This will further help the State to save an amount around Rs. 625 crore annually on account of restructuring of the debts.

Supporting the DISCOM financially is one of the many benefits of the MoU. In addition to this, it will also enhance the current operational efficiency of the DISCOMs in the State. Smart metering will be applied for the high-end consumers, and there will also be indexing of the power consumption of consumers and special system to map the losses incurred. Transformers and meters will also be upgraded or changed, wherever required to help them supply power efficiently in all parts of State.

Along with Punjab, there are a total of seven states, which have signed the MoU under the scheme, UDAY, to help in proper management of DISCOMs in their state and ensure better power supply to the people of the state. It is a great step towards offering power to the public at better rates, as this will eventually help in reducing the cost of supply of power. In order to improve the power infrastructure, the central government will also help the State and the DISCOMS, by offering them various incentives from time to time.

All in all, participating in this scheme would definitely be beneficial for the State Government, as it can save an amount of approximately Rs. 5475 crore with the help of various parts of this scheme. The public of Punjab will be highly beneficial with the effective implementation of this scheme, as this will offer them with lesser cost per unit of electricity and better supply of power to all districts of Punjab.

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