UDAY Scheme Loses Power Sharp Spike In Discom Losses

In news:

Discom losses, which had progressively reduced in the first couple of years since the scheme’s rollout in November 2015, have rebounded in FY ’19 to nearly double the losses recorded the previous year.

About Section 144 of CrPC

  • The data points to discoms lagging behind in eliminating the gap between the average cost of supply and realisable revenue (ACS-ARR gap).
  • Discoms have also missed the FY ’19 UDAY target to bring down their aggregate technical and commercial (AT&C) losses to 15 per cent.
  • The primary reason for failure, as is being recognised in policy circles, is the failure of discoms to collect the full cost that they pay for power the same issue that had led to the floundering of the previous two schemes.

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