The Government of India
and the State of Mizoram signed a Memorandum of Understanding (MOU) under the
scheme Ujwal DISCOM Assurance Yojana (UDAY) today for operational improvement
of the State’s Power Distribution Department.
With the signing of MoU by Mizoram, the total States/ Union territories covered
under UDAY will be 27. Mizoram would derive an overall net benefit of
approximately Rs.198 crores by opting to participate in UDAY, by way of
cheaper funds, reduction in AT&C and transmission losses, interventions in
energy efficiency, etc. during the period of turnaround.
The MoU paves way for
improving operational efficiency of the Power Distribution department of the
State. 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 15% and 2.50% respectively is likely to bring
additional revenue of around Rs.166 crores during the period of turnaround.
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 Mizoram. The gain is expected to be around Rs.30
crores.
While efforts will be
made by the Power Distribution Department of the State to improve their
operational efficiency, and thereby reduce the cost of supply of power, the
Central Government would also provide incentives to 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. Further, with improved
efficiency, the State Power department would be in a better position to borrow
funds at cheaper rates for Power infrastructure development/improvement in the
State.
The ultimate benefit of
signing the MOU would go to the people of Mizoram. Reduced levels of
transmission and AT&C losses would mean lesser cost per unit of electricity
to Consumers. Further, financially and operationally healthy State Power
Distribution department would be in a position to supply more power. Higher
demand for power 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. The scheme would also allow speedy
availability of cheaper power to 22,007 households in the State that are still
without electricity. Availability of 24*7 power to hitherto unconnected
villages/households etc. would boost the Economy, provide more employment
opportunities for the people of the State and thereby, improve the standard of
living of the people of the State.
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RM/VM