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The Ujwal DISCOM Assurance Yojana (UDAY) scheme was launched by the Government of India to reduce the losses incurred by state electricity boards or SEBs. The scheme is based on a simple principle: make consumers pay for their use of electricity and not subsidize them for losses incurred by the distribution companies.
The total amount saved is about Rs. 38,000 crores annually which will be used to provide better services like free power connections, free power supply, provision of new meters, etc.
Table of Contents
Introduction: What is UDAY and How Does it Help the Indian Economy?
UDAY is an acronym for Ujwal DISCOM Assurance Yojana. It was launched by the Indian government in November 2015 with the intent to reduce losses in power distribution and improve efficiency.
The main objective of UDAY is to make the power distribution system more efficient, reduce losses, and increase investment in infrastructure. It has been successful so far as it has helped many states improve their operational efficiencies and reduced losses by 50% or more.
Key Features of the UDAY Scheme and How It Will Impact the Market
The UDAY scheme is a revolutionary program by the government of India to revive power distribution companies. It will help them to reduce their losses and improve their performance. This will also lead to an increase in power production and better quality of services for consumers.
Key features:
– The UDAY scheme will be implemented in six states initially – Uttar Pradesh, Rajasthan, Haryana, Punjab, Tamil Nadu, and Jammu & Kashmir.
– The government has promised that the states will get around Rs 18,000 crore annually as a subsidy from the centre for implementing this scheme till 2020.
– The success of this scheme depends on how effectively it is implemented by state governments and how much they can save from their expenditures.
How Will UDAY Benefit Different Types of Households in India?
The UDAY scheme is a revolutionary initiative of the Indian Government to reform the power sector in India. The scheme is aimed at strengthening the distribution companies and improving their efficiency.
By reforming these distribution companies, it will be easier for them to provide power to households that are currently not receiving it. This will also help in reducing the gap between rural and urban areas as well as reduce load shedding.
As per the latest news, all Indian households will be covered under this scheme by March 2018
What are the Challenges of Implementing UDAY That Needs to Be Addressed?
The main challenges of implementing UDAY is the lack of political will and the lack of a clear vision for the future.
The government needs to be more proactive in this regard and come up with a clear roadmap for electricity reforms in India.
Conclusion
The most important and key aspect of the UDAY scheme is to make sure that there is a reduction in the aggregate technical and commercial (AT&C) losses. AT&C losses are generally considered to be the “lost” or “unaccounted for” electricity.
There are many reasons why AT&C losses exist. One of them is pilferage of electricity from distribution companies, theft by consumers, and technical faults in transmission lines or meters.
The success of UDAY scheme relies on reducing these AT&C losses by at least 20% over a period of three years.
Please visit Ujwal DISCOM Assurance Yojana for more details.
You can also download UDAY app from the Google App Store and from Apple Store
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