Rural Electrification Corporation Limited(A Government of India Enterprise)

Web Portal/Mobile App Developed by: UDAY Cell

UDAY: UJWAL DISCOM ASSURANCE YOJANA

ENABLINGDISCOMSBECOMESUSTAINABLEwww.uday.gov.in

Email : udaygovtin@gmail.com, Website : www.recindia.com

(AN INITIATIVE BY MINISTRY OF POWER, GOVERNMENT OF INDIA)

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An Overview of Power Sector in India

About UDAYUnion Cabinet in its meeting held on November 05, 2015 approved Ujwal DISCOM Assurance Yojana (UDAY). The scheme envisages

� Financial Turnaround of DISCOMs

� Operational improvement of DISCOMs

� Reduction of Cost of Generation of Power

� Development of Renewable Energy Efficiency & Conservation

Availability of 24x7 uninterrupted and affordable power supply is a prerequisite for economic development of any country. Current per capita electricity consumption of India is about 1000 KwH, which is one third of the World average and one-fourth of our neighbouring country China. Thus India has still to cover a long distance to provide this basic infrastructure to improve the quality of life of its citizens and to realize the vision of “Digital India” and “Make in India” of our Hon’ble Prime Minister. Realizing this, Ministry of power, Government of India, has evolved an integrated road map for accelerated development of power sector in India. For ensuring its success and efficient functioning of power sector, development of distribution segment remains most pertinent.

UDAY integrates entire Power Supply Chain � Coal Supply: Rationalisation of coal linkages, increased supply of domestic coal, supply of

crushed and washed coal

� Generation: Most effcient use of coal to reduce generation cost, optimal renewable portfolio (RPO)

� Transmission: Faster completion of Inter-State lines and reduction in transmission losses

� Distribution: Feeder metering, Feeder Separation, Smart Metering, DT Metering etc. to reduce AT& C losses

� Billing & Collection: 100% billing and collection to reduce ACS-ARR Gap / AT&C Losses

DistributionDistribution sector still remains the weakest link in electric power supply chain. Most of State owned DISCOMs were reeling under severe financial stress, leading to accumulation of debt. In order to encourage States to undertake reforms in Distribution Sector, Ministry of Power, Govt. of India, has taken many flagship initiatives like Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY), Integrated Power Development Scheme (IPDS), Ujwal DISCOM Assurance Yojana (UDAY).

While with DDUGJY and IPDS, Power Ministry has targeted infrastructure development of the distribution sector; UDAY aims to achieve overall development of Power Sector, with major focus on improvement of operational efficiency and financial turnaround of the DISCOMs.

About UDAY Portal / Mobile App

A web based portal to track and monitor the progress of DISCOMs on Operational and Financial Parameters (www.uday.gov.in). It depicts Monthly / Quarterly / Cumulative progress of Power Distribution Companies on UDAY Parameters at National, State and DISCOM levels

Key Components:

1.1 National, State and DISCOM DashboardThese provide a snapshot of Financial and Operational performance at various levels

Financial Indicators provide existing status at National, State and DISCOM level, on various parameters as under:• Bonds: Cumulative amount of Bonds issued for takeover of DISCOM’s liabilities

• AT&C loss & ACS-ARR Gap: Status at DISCOM / State and National Level

• Tarrif Revision: Presents status on Tariff Revision of various UDAY states

1.1 National / State / DISCOM Dashboard

1.2 State / DISCOM Health-Cards

1.3 States / DISCOMs Ranking1.4 UDAY Login / Control Panel1.5 Crucial UDAY documents

Operational Indicators provide cumulative status of the progress made at National, State and DISCOM level, on various parameters like:• Feeder Metering (Rural/ Urban): Indicates metering status of feeders in rural / urban areas• Distribution Transformer Metering (Rural/ Urban): Indicates metering status of Distribution

Transformers in rural / urban areas

• Electricity Access to Un-connected Households: Depicts status of energy access (release of electrical connections) to the households

• Smart Metering: Monitors the smart metering status of consumers with load between 200 kwh to 500 kwh and more than 500 kwh.

• Rural Feeder Audit: Indicates the status of rural feeders being audited

• Feeder Segregation: Depicts status of agricultural feeders segregated out of total targeted feeders

• UJALA: shows the progress made on distribution of LEDs vis-à-vis the total targets

1.2 State / DISCOM Health-CardsState / DISCOMs Health Cards include:• State/DISCOM Dashboards: Depict cumulative progress of respective States /

DISCOMs (Pre and post signing of UDAY)• Post UDAY Improvement Trends: Depict the cumulative/quarterly progress, in

absolute terms, achieved by the DISCOM in post UDAY period

• States / DISCOMs Improvement Barometers: Depict Post - UDAY cumulative progress made by State /DISCOMs in comparison to UDAY MoU targets/projections. There are fourteen such parameters including AT&C loss, ACS-ARR gap, Feeder metering, DT Metering, Feeder Segregation, Feeder Audit, Electricity Access to Un-connection Households, Smart metering, LEDs distribution etc.

In addition to above major parameters, there are 14 other parameters like Feeder Improvement, ERP, Agricultural Pumps, Replacement of Street Lights, Anti-Theft Name Shame Campaign etc on which progress of DISCOMs is being monitored. The details of same are available for viewing and analysis to States / DISCOMs / Ministry of Power in the Login section.

1.4 UDAY Login / Control PanelEach State / DISCOM has been provided unique Login ID & password to Portal Control panel for directly updating the baseline data, targets and monthly / quarterly progress of twenty six UDAY parameters. Other important documents like MOUs, Action Plan, Minutes of Meeting, PPTs and Issues requiring intervention of GoI can also be viewed / uploaded by stakeholders.The portal also generates reports of the periodic progress made by the DISCOMs / States and may be used for performance tracking, including the data entry status. UDAY Turnaround Plan

1.3 States / DISCOMs Ranking:UDAY States / DISCOMs Ranking provides ready comparison of progress made by various States / DISCOMs on 14 major UDAY Improvement Barometer parameters and is expected to promote healthy competition for adoption of effciency improvement measures.

1.5 Crucial UDAY documentsIn addition to outlining the performance of DISCOMs on various performance parameters, important UDAY related documents are in the public domain for downloading/viewing from the portal. These include UDAY scheme notifications, MOUs of all states, UDAY news etc.

Eighteen States/UTs encompassing thirty six DISCOMs have already signed Tripartite Memorandum of Understanding (MOU) for achieving turnaround of DISCOMs in their respective states.

States Joining UDAY

With MoU signing of above 2 states, the UDAY Club is now 18 States/UTs strong.

Maharashtra signing UDAY MoU at Vadodara, Gujarat

Himachal Pradesh signing UDAY MoU at New Delhi

A look at UDAY Club

The States of Tamil Nadu and Sikkim to sign UDAY MoU soon.

Telangana & Assam to join on 4th Jan, 2017

S.No Parameter UnitTotal No. to be achieved (Base

year + post-UDAY)Achievement % age

Achievement

1 Feeder Metering (R) (In no.) 81110 78178 962 Feeder Metering (U) (In no.) 28887 28746 993 DT Metering (U) (In no.) 985161 514776 524 DT Metering (R) (In no.) 2998120 1292763 435 Rural Feeder Audit (In no.) 77113 87966 1006 Ujala (In Lakh) 1144.65 1357.60 1007 Street Light LED (In no.) 860057 335590 398 Name Shame Campaign (In no.) 22088 21768 99

� The State of Rajasthan reduced ACS-ARR gap from Rs. 1.68/unit as on FY 2015-16 to Rs. 0.83/unit during H1 FY 2016-17 (on input energy basis).

� DHBVNL (One of the two Haryana DISCOMs) has made profit of Rs. 79 Crores in H1 FY 17 as against loss of Rs. 472 Crores in FY 2015-16.

� Gujarat, Uttarakhand, Chhattisgarh & Maharashtra have achieved reduction in AT&C losses to 13.64%, 33.25%, 26.66% and 20.25% respectively during April-September, 2016 compared from 16.15%, 35.41%, 27.33% and 20.59% respectively during the corresponding period in 2015-16.

� 15 out of 18 UDAY States/UT have filed Tariff Petition (including MYT) for 2016-17

� UDAY States have reduced their avg. cost of power supply by 12.83% (Rajasthan), 12.25% (Bihar), & 7.83% (Punjab) from FY 16 to H1 2016-17.

� Manipur DISCOM-MSPDCL has taken up the installation of Pre-paid metering to reduce the outstanding consumer debts, energy theft and improve the billing efficiency. The revenue collection has gone up from Rs. 88.61 Crore in 2012-13 (Rs. 7.38 Crore Monthly Average) to Rs. 175.95 Crore in 2015-16 (Rs. 14.66 Crore Monthly Average).

ACHIEVEMENT HIGHLIGHTS

Bonds Issue-A runaway successIssuance of Bonds under UDAY has been quite a success. Around 82% i.e. 1.82 Lakh Crore Bonds have been successfully issued against targeted Rs 2.22 Lakh Crore. The swapping of high cost loan with cheaper Bonds and state taking-over large share of DISCOM debt has brought down DISCOM interest liabilities substantially. Estimated savings on account of interest cost reduction is expected to be to the tune of Rs. 6400 Crores p.a.Impressive performance in Operational ParametersUDAY States have shown great commitment and though it is early days of UDAY, progress generally on operational parameters has been commendable. The cumulative progress as available on UDAY Portal is as under:

JOURNEY OF UDAY - A QUICK GLANCE AT ACHIEVEMENTS

* Data is as per information provided by DISCOMs, for almost 15 out of total 18 UDAY States* Achievements may be more than targets as DISCOMs / States may have pre-achieved targets set for further period of

UDAY Domain

* Data is as per information provided by DISCOMs

DISCOMs progress is being monitored monthly / Quarterly under UDAY

STATE’S INITIATIVES: A SUMMARY � Rajasthan: Has launched “Mukhya Mantri Vidyut Sudhar

Abhiyan” to reduce AT&C losses through various technical and anti-theft measures.100% feeders have been metered. 100% consumer metering including smart metering, for high-end, domestic commercial, industrial consumer is being rolled out. Proposed to make all R-APDRP feeders communicable by end of January 2017 and balance by June 2017.

� Haryana: “Mhara Gaon Jagmag Gaon” is a scheme to provide the 24 Hours power supply in rural areas. The supply hours of these feeders were increased from 12.00 hrs to 15.00 hrs. After allowing for the specified quantum of technical losses below 20%, if the village pays bills to the extent of 90%, their electricity supply will be increased from 18 to 21 hours.

� Manipur: Name & Shame-Campaigns using Public-Hoardings, Newspaper notices with Consumer Details, Radio-announcements and Other Social-Media like Facebook, Whatsapp etc. are being carried-out to bring down the AT&C from the present level of 42%to35% in 2016-17

� Bihar: To reduce AT&C losses, DISCOMs of Bihar have implemented their own billing software in Urban and Rural areas and started Spot billing through web-based Mobile app with feature of image of meter reading on the consumer’s bills for better satisfaction of the consumers.

Challenges � Regulatory treatment

of 25% DISCOM debts, Related Problems in issue of DISCOM bonds, Working capital & loss financing; approach of RBI against grain of Cabinet decision

� Financial re-engineering has resulted in reduction of ACS-ARR Gap & Interest Cost, but further efforts are required for improving billing and collection efficiency; in order to meet AT&C Loss reduction targets under UDAY

� Cost of power for NTPC had reduced; but Coal price hike, Clean energy Cess, Railway freight Increase and RPO results in increased cost of power. Also Risk allocation with respect to coal supply & transportation is unfavourable for power plants

� Installation of Smart Meters remain a challenge due to high investment requirements

Ms Ritu Maheshwari, IASExecutive Director (State Gen., T&D) REC and ED (UDAY)

SCOPE Complex, Rural Electrification Corp Ltd Email: udaygovtin@gmail.comTel: 011-24365161, 43091500

Mr. Vishal KapoorDirector (Distribution)

Shram Shakti Bhawan, Ministry of Power, New Delhi, 11000I

Tel: 011-2371 7474

UDAY Mobile App/Portal: Key Takeaways 9 Ease of access:

DISCOM’s/ State progress is accessible through just visiting UDAY web portal or through mobile App.

9 Ready Status:

Acts as ready reckoner for all the stakeholders including investors, lenders, consumers, suppliers etc.

9 Improve Transparency:

The obscure functioning of DISCOMs till now, is now in public domain for scrutiny; thus providing transparency and improved accountability

9 Central Monitoring:

Will enable monitoring of progress made by DISCOMs at Central Ministry level and enable making future schemes / plans for improving DISCOMs Performance

9 Latest Information:

It provides the details of latest progress made by the DISCOMs, as recent as last Month / Quarter

9 Standard Performance Audit:

Effective monitoring of common 26 major

performance parameters across States/DISCOMs provides direct comparability of performance of DISCOMs on monthly/quarterly basis

9 Data Integration & Processing:

The portal integrates DISCOM level data into State level and National Level. Also, the raw data is processed into useful information for better performance analysis.

9 Promote Competition:

Ready availability of performance metrics of various DISCOMs in a single platform, may promote healthy competition between DISCOMs/States.

9 Empowering Consumers/ Other Stakeholders:

Enables comparison between DISCOMs, States and at National level, w.r.t various performance criteria; thus enlightening consumers to demand better services for themselves. This shall also provide clear picture of the focus of States/ Utilities towards type of projects being implemented by them, thus prompting suppliers to develop their capabilities accordingly

CONTACT US :

Web Portal/Mobile App Developed by: UDAY Cell, RECL

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