Lok Sabha Question No. 4 (STARRED), answered on 2017-02-02
Subject: UDAY
Ministry: POWER
Asked by: SHOBHA KARANDLAJE, PRATHAP SIMHA

## GOVERNMENT OF INDIA MINISTRY OF POWER

## LOK SABHA STARRED QUESTION NO.4 TO BE ANSWERED ON 02.02.2017

## UDAY

- *4. KUMARI SHOBHA KARANDLAJE: SHRI PRATHAP SIMHA:

Will the Minister of POWER be pleased to state:

- (a) whether  the  Ujjwal  Discom  Assurance  Yojana  (UDAY)  launched  for  the financial and operational turnaround of the State owned  Power  Distribution Companies (DISCOMs), may likely to create new problems for them and lead to debt trap in the long run and if so, the facts thereof;
- (b) whether the States and State- DISCOMS were taken on board, in the matter of planning, execution and implementation of the Scheme and if so, the details thereof;
- (c) the achievements of the scheme, State-wise;
- (d) whether the scheme is optional for States and if so, the details of the States which have signed MoU with the Union Government under the scheme; and
- (e) the steps being taken by the Union Government to reduce likely future losses of State power utilities under the scheme?

## A N S W E R

THE MINISTER OF STATE (INDEPENDENT CHARGE) FOR POWER, COAL, NEW & RENEWABLE ENERGY AND MINES

( SHRI  PIYUSH GOYAL )

(a) to (e) : A Statement is laid on the Table of the House.

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STATEMENT  REFERRED  TO  IN  REPLY  TO  PARTS  (a)  TO  (e)  OF  STARRED QUESTION  NO.4  TO  BE  ANSWERED  IN  THE  LOK  SABHA  ON  02.02.2017 REGARDING UDAY.

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- (a) & (b) : No, Madam.  Ujwal DISCOM Assurance Yojana (UDAY) has been evolved  and  launched  after  extensive  stakeholder  consultations  including Banks/Financial Institutions (FIs) and various State Governments for financial and operational turnaround of the State owned Power Distribution Companies (DISCOMs).  The scheme aims to reduce interest burden, cost of power  &  power  losses  in  Distribution  sector  and  improve  operational efficiency of DISCOMs.

A  Monitoring  Committee  has  been  constituted  to  ensure  close monitoring  of  performance  of  the  participating  States  under  UDAY.    The Committee reviews the operational and financial parameters of participating States, including issuance of bonds, bank funding for operational requirement, tariff related issues and offset issues raised by States.

- (c) : As on 27-01-2017, Bonds worth Rs.1,83,084.29 crore have been issued by the participating States under UDAY, at reduced rate of interest leading to savings in the interest burden.  The details of issuance of Bonds and Parameters-wise Targets and Achievements during H1 of FY 2016-17 by the participating States of UDAY are given at Annexures-I & II respectively.
- (d) : The  Scheme  is  optional  for  States  to  join.    As  on  27-01-2017, Twenty  States,  namely,  Andhra  Pradesh,  Assam,  Bihar,  Chhattisgarh,  Goa, Gujarat, Haryana, Himachal Pradesh, Jammu  & Kashmir, Jharkhand, Karnataka, Madhya Pradesh, Maharashtra, Manipur, Punjab, Rajasthan, Tamil Nadu, Telangana, Uttar Pradesh, Uttarakhand and Union Territory of Puducherry have signed the Memorandum of Understanding (MoU) with the Government of India under Ujwal DISCOM Assurance Yojana (UDAY).  Out of the above States Gujarat, Goa, Karnataka, Manipur, Puducherry and Uttarakhand  have  joined  UDAY  for  the  operational  turnaround  of  their DISCOMs.
- (e) : Under  the  scheme,  States  are  to  take  over  75%  of  debt  of DISCOMs as on 30-09-2015 which would be outside the Fiscal Responsibility &  Budgetary  Management  (FRBM)  limits.    To  reduce  chances  of  future losses, States/DISCOMs  have  committed  to take measures  to reduce Aggregate Technical & Commercial (AT&C) losses and revenue gaps, which include  coal  linkage  rationalization,  liberally  allowing  coal  swaps  from inefficient  to  efficient  plants,  allocation  of  coal  linkages  at  notified  prices, demand side management & energy efficiency measures etc.

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ANNEXURE-I

ANNEXURE  REFERRED  TO  IN  PART  (c)  OF  THE  STATEMENT  LAID  IN  REPLY  TO STARRED QUESTION NO. 04 TO BE ANSWERED IN THE LOK SABHA ON 02.02.2017 REGARDING UDAY.

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| SUMMARY OF ISSUANCE OF BONDS UNDER UDAY (AS ON 27-01-2017)   | SUMMARY OF ISSUANCE OF BONDS UNDER UDAY (AS ON 27-01-2017)   | SUMMARY OF ISSUANCE OF BONDS UNDER UDAY (AS ON 27-01-2017)   | SUMMARY OF ISSUANCE OF BONDS UNDER UDAY (AS ON 27-01-2017)   | SUMMARY OF ISSUANCE OF BONDS UNDER UDAY (AS ON 27-01-2017)   |
|--------------------------------------------------------------|--------------------------------------------------------------|--------------------------------------------------------------|--------------------------------------------------------------|--------------------------------------------------------------|
| Sl. No.                                                      | State                                                        | Discom Liabilities (as per MoU) as on 30-09-2015             | Total Bonds issued by State till date                        | Total Bonds issued by Discom                                 |
| 1                                                            | 2                                                            | 3                                                            | 4                                                            | 5                                                            |
| 1                                                            | RAJASTHAN                                                    | 80530                                                        | 58157                                                        | 12368                                                        |
| 2                                                            | UTTAR PRADESH                                                | 53935                                                        | 39133.29                                                     | 10714                                                        |
| 3                                                            | CHHATTISGARH                                                 | 1740                                                         | 870                                                          | 0                                                            |
| 4                                                            | JHARKHAND                                                    | 6718                                                         | 6136                                                         | 0                                                            |
| 5                                                            | PUNJAB                                                       | 20838                                                        | 15629                                                        | 0                                                            |
| 6                                                            | BIHAR                                                        | 3109                                                         | 2332                                                         | 0                                                            |
| 7                                                            | JAMMU & KASHMIR                                              | 3538                                                         | 3538                                                         | 0                                                            |
| 8                                                            | HARYANA                                                      | 34602                                                        | 25951                                                        | 0                                                            |
| 9                                                            | Andhra Pradesh                                               | 11008                                                        | 8256                                                         | 0                                                            |
| 10                                                           | Madhya Pradesh                                               | 30594                                                        | 0                                                            | 0                                                            |
| 11                                                           | Maharashtra                                                  | 6613                                                         | 0                                                            | 0                                                            |
| 12                                                           | Himachal Pradesh                                             | 3854                                                         | 0                                                            | 0                                                            |
| 13                                                           | Telangana                                                    | 11897                                                        | 0                                                            | 0                                                            |
| 14                                                           | Assam                                                        | 1510                                                         | 0                                                            | 0                                                            |
| 15                                                           | Tamil Nadu                                                   | 30420                                                        | 0                                                            | 0                                                            |
| TOTAL                                                        | TOTAL                                                        | 300906                                                       | 160002.29                                                    | 23082                                                        |

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ANNEXURE-II

## ANNEXURE REFERRED TO IN PART (c) OF THE STATEMENT LAID IN REPLY TO STARRED QUESTION NO. 04 TO BE ANSWERED IN THE LOK SABHA ON 02.02.2017 REGARDING UDAY.

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| NAME STATE     | PARAMETERS WISE TARGETS AND ACHIEVEMENT IN MAJOR PARAMETERS DURING H1 OF FY 2016-17 UNDER UDAY   | PARAMETERS WISE TARGETS AND ACHIEVEMENT IN MAJOR PARAMETERS DURING H1 OF FY 2016-17 UNDER UDAY   | PARAMETERS WISE TARGETS AND ACHIEVEMENT IN MAJOR PARAMETERS DURING H1 OF FY 2016-17 UNDER UDAY   | PARAMETERS WISE TARGETS AND ACHIEVEMENT IN MAJOR PARAMETERS DURING H1 OF FY 2016-17 UNDER UDAY   | PARAMETERS WISE TARGETS AND ACHIEVEMENT IN MAJOR PARAMETERS DURING H1 OF FY 2016-17 UNDER UDAY   | PARAMETERS WISE TARGETS AND ACHIEVEMENT IN MAJOR PARAMETERS DURING H1 OF FY 2016-17 UNDER UDAY   | PARAMETERS WISE TARGETS AND ACHIEVEMENT IN MAJOR PARAMETERS DURING H1 OF FY 2016-17 UNDER UDAY   | PARAMETERS WISE TARGETS AND ACHIEVEMENT IN MAJOR PARAMETERS DURING H1 OF FY 2016-17 UNDER UDAY   | PARAMETERS WISE TARGETS AND ACHIEVEMENT IN MAJOR PARAMETERS DURING H1 OF FY 2016-17 UNDER UDAY   | PARAMETERS WISE TARGETS AND ACHIEVEMENT IN MAJOR PARAMETERS DURING H1 OF FY 2016-17 UNDER UDAY   | PARAMETERS WISE TARGETS AND ACHIEVEMENT IN MAJOR PARAMETERS DURING H1 OF FY 2016-17 UNDER UDAY   | PARAMETERS WISE TARGETS AND ACHIEVEMENT IN MAJOR PARAMETERS DURING H1 OF FY 2016-17 UNDER UDAY   | PARAMETERS WISE TARGETS AND ACHIEVEMENT IN MAJOR PARAMETERS DURING H1 OF FY 2016-17 UNDER UDAY   | PARAMETERS WISE TARGETS AND ACHIEVEMENT IN MAJOR PARAMETERS DURING H1 OF FY 2016-17 UNDER UDAY   |
|----------------|--------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------|
| OF             | Feeder Metering (Urban) [Nos.]                                                                   | Feeder Metering (Urban) [Nos.]                                                                   | Feeder Metering (Rural) [Nos.]                                                                   | Feeder Metering (Rural) [Nos.]                                                                   | DT Metering (Urban) [Nos.]                                                                       | DT Metering (Urban) [Nos.]                                                                       | DT Metering (Rural) [Nos.]                                                                       | DT Metering (Rural) [Nos.]                                                                       | Domestic Connections (Lacs)                                                                      | Domestic Connections (Lacs)                                                                      | Feeder Improvement (Nos.)                                                                        | Feeder Improvement (Nos.)                                                                        | Feeder Segregation (Nos.)                                                                        | Feeder Segregation (Nos.)                                                                        |
| OF             | Target                                                                                           | Achievement                                                                                      | Target                                                                                           | Achievement                                                                                      | Target                                                                                           | Achievement                                                                                      | Target                                                                                           | Achievement                                                                                      | Target                                                                                           | Achievement                                                                                      | Target                                                                                           | Achievement                                                                                      | Target                                                                                           | Achievement                                                                                      |
| 1              | 2                                                                                                | 3                                                                                                | 4                                                                                                | 5                                                                                                | 6                                                                                                | 7                                                                                                | 8                                                                                                | 9                                                                                                | 10                                                                                               | 11                                                                                               | 12                                                                                               | 13                                                                                               | 14                                                                                               | 15                                                                                               |
| Gujarat        | 0.00                                                                                             | 67.00                                                                                            | 0.00                                                                                             | 181.00                                                                                           | 6189.00                                                                                          | 9169.00                                                                                          | 80561.00                                                                                         | 45794.00                                                                                         | 1.43                                                                                             | 1.76                                                                                             | 3543.00                                                                                          | 4983.00                                                                                          | 0.00                                                                                             | 206.00                                                                                           |
| Punjab         | 0.00                                                                                             | 0.00                                                                                             | 0.00                                                                                             | 0.00                                                                                             | 13347.00                                                                                         | 2000.00                                                                                          | 35408.00                                                                                         | 0.00                                                                                             | 0.00                                                                                             | 0.00                                                                                             | 7938.00                                                                                          | 4300.00                                                                                          | 0.00                                                                                             | 0.00                                                                                             |
| Karnataka      | 4.00                                                                                             | 5.00                                                                                             | 9.00                                                                                             | 10.00                                                                                            | 1953.00                                                                                          | 2097.00                                                                                          | 10910.00                                                                                         | 12187.00                                                                                         | 0.56                                                                                             | 0.59                                                                                             | 643.00                                                                                           | 387.00                                                                                           | 234.00                                                                                           | 132.00                                                                                           |
| Goa            | 0.00                                                                                             | 0.00                                                                                             | 0.00                                                                                             | 0.00                                                                                             | 250.00                                                                                           | 0.00                                                                                             | 399.00                                                                                           | 0.00                                                                                             | 0.00                                                                                             | 0.00                                                                                             | 0.00                                                                                             | 0.00                                                                                             | 0.00                                                                                             | 0.00                                                                                             |
| Andhra Pradesh | 0.00                                                                                             | 0.00                                                                                             | 0.00                                                                                             | 0.00                                                                                             | 250.00                                                                                           | 0.00                                                                                             | 2000.00                                                                                          | 0.00                                                                                             | 2.83                                                                                             | 4.10                                                                                             | 32.00                                                                                            | 31.00                                                                                            | 106.00                                                                                           | 0.00                                                                                             |
| Bihar          | 0.00                                                                                             | 0.00                                                                                             | 794.00                                                                                           | 165.00                                                                                           | 23499.00                                                                                         | 0.00                                                                                             | 27362.00                                                                                         | 0.00                                                                                             | 17.93                                                                                            | 8.20                                                                                             | 14128.00                                                                                         | 1505.97                                                                                          | 0.00                                                                                             | 0.00                                                                                             |
| Jharkhand      | 0.00                                                                                             | 25.19                                                                                            | 661.00                                                                                           | 0.00                                                                                             | 0.00                                                                                             | 0.00                                                                                             | 20000.00                                                                                         | 0.00                                                                                             | 6.00                                                                                             | 1.00                                                                                             | 210.00                                                                                           | 0.00                                                                                             | 115.00                                                                                           | 0.00                                                                                             |
| Rajasthan      | 153.00                                                                                           | 141.00                                                                                           | 1598.00                                                                                          | 1036.00                                                                                          | 9073.00                                                                                          | 8932.00                                                                                          | 0.00                                                                                             | 0.00                                                                                             | 2.50                                                                                             | 2.74                                                                                             | 7000.00                                                                                          | 5985.00                                                                                          | 0.00                                                                                             | 0.00                                                                                             |
| Madhya Pradesh | 61.00                                                                                            | 61.00                                                                                            | 692.00                                                                                           | 646.00                                                                                           | 3607.00                                                                                          | 1826.00                                                                                          | 42937.00                                                                                         | 15995.00                                                                                         | 3.14                                                                                             | 2.16                                                                                             | 112.00                                                                                           | 52.00                                                                                            | 176.00                                                                                           | 170.00                                                                                           |
| Manipur        | 9.00                                                                                             | 9.00                                                                                             | 15.00                                                                                            | 30.00                                                                                            | 359.00                                                                                           | 354.00                                                                                           | 436.00                                                                                           | 395.00                                                                                           | 0.69                                                                                             | 0.59                                                                                             | 17.00                                                                                            | 17.00                                                                                            | 0.00                                                                                             | 0.00                                                                                             |
| Puducherry     | 5.00                                                                                             | 0.00                                                                                             | 6.00                                                                                             | 0.00                                                                                             | 435.00                                                                                           | 0.00                                                                                             | 760.00                                                                                           | 0.00                                                                                             | 0.00                                                                                             | 0.00                                                                                             | 0.00                                                                                             | 0.00                                                                                             | 0.00                                                                                             | 0.00                                                                                             |
| Chhattisgarh   | 223.00                                                                                           | 121.00                                                                                           | 887.00                                                                                           | 349.00                                                                                           | 11115.00                                                                                         | 0.00                                                                                             | 29619.00                                                                                         | 0.00                                                                                             | 1.10                                                                                             | 0.00                                                                                             | 33.00                                                                                            | 0.00                                                                                             | 140.00                                                                                           | 0.00                                                                                             |
| Haryana        | 0.00                                                                                             | 0.00                                                                                             | 0.00                                                                                             | 0.00                                                                                             | 4538.00                                                                                          | 73.00                                                                                            | 0.00                                                                                             | 0.00                                                                                             | 45.30                                                                                            | 0.52                                                                                             | 0.00                                                                                             | 267.00                                                                                           | 0.00                                                                                             | 0.00                                                                                             |
| Uttarakhand    | 0.00                                                                                             | 0.00                                                                                             | 0.00                                                                                             | 0.00                                                                                             | 108.00                                                                                           | 0.00                                                                                             | 0.00                                                                                             | 0.00                                                                                             | 0.05                                                                                             | 0.03                                                                                             | 8.00                                                                                             | 13.00                                                                                            | 8.00                                                                                             | 0.00                                                                                             |
| Maharashtra    | 46.00                                                                                            | 46.00                                                                                            | 34.00                                                                                            | 34.00                                                                                            | 1506.00                                                                                          | 1506.00                                                                                          | 113.00                                                                                           | 113.00                                                                                           | 1.00                                                                                             | 3.86                                                                                             | 930.00                                                                                           | 0.00                                                                                             | 0.00                                                                                             | 0.00                                                                                             |
| J&K            | 324.00                                                                                           | 324.00                                                                                           | 582.00                                                                                           | 299.00                                                                                           | 9081.00                                                                                          | 535.00                                                                                           | 0.00                                                                                             | 0.00                                                                                             | 0.40                                                                                             | 0.00                                                                                             | 60.00                                                                                            | 0.00                                                                                             | 23.00                                                                                            | 0.00                                                                                             |

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