Lok Sabha Question No. 1059 (UNSTARRED), answered on 2019-06-27
Subject: Efficiency of Power Distribution Companies
Ministry: POWER
Asked by: Pankaj Chowdhary

## GOVERNMENT OF INDIA MINISTRY OF POWER

LOK SABHA UNSTARRED QUESTION NO.1059 TO BE ANSWERED ON 27.06.2019

## EFFICIENCY OF POWER DISTRIBUTION COMPANIES

†1059.  SHRI PANKAJ CHAUDHARY:

Will the Minister of POWER be pleased to state:

(a) whether  the  Government  proposes  to  formulate  any  scheme  to improve the condition of power distribution companies;

(b) if so, the details thereof;

(c) the  steps  taken  by  the  Government  to  ensure  affordable  and  24 hours power supply particularly in rural areas of the country;

(d) whether  the  Government  proposes  to  formulate  any  scheme  to revive closed power plants to increase power generation so as to ensure supply as per the demand; and

(e) if so, the details thereof?

## A N S W E R

THE MINISTER OF STATE (INDEPENDENT CHARGE) FOR POWER, NEW & RENEWABLE  ENERGY  AND THE MINISTER OF STATE FOR SKILL DEVELOPMENT & ENTREPRENEURSHIP

( SHRI  R.K. SINGH)

(a) to (c) :   Government  of  India  has  formulated  and  launched  Ujwal Discom Assurance Yojana (UDAY) in November, 2015 for the financial and operational  turnaround  of  state  owned  Power  Distribution  Companies (DISCOMs). The aim of this scheme is to reduce interest burden, reduce the cost of power, reduce power losses in Distribution sector and improve operational efficiency of DISCOMs.'

…………2.

Government has also launched various schemes like Integrated Power Development Scheme (IPDS) and Deen Dayal Upadhyaya Gram  Jyoti  Yojana  (DDUGJY)  for  strengthening  of  sub-transmission  and distribution networks in urban and rural areas in order to ensure reliable and affordable power supply in the country.

(d) & (e) :    Government  of  India  constituted  a  High  Level  Empowered Committee  (HLEC)  under  the  Chairmanship  of  Cabinet  Secretary  to address  the  issues  of  Stressed  Thermal  Power  Projects.  Based  on  High of Ministers  (GoM)  has  made  recommendations  regarding  stressed  power projects.  The  major  recommendations  of  the  GoM  as  approved  by  the

Level Empowered  Committee  (HLEC)  recommendations,  a  Group Government are:-

-  Grant of linkage coal for short-term Power Purchase Agreement (PPA).
-  Allowed existing coal linkage to be used in case of termination of PPAs due to payment default by Discoms.
-  Procurement  of  bulk  power  by  a  nodal  agency  against  predeclared linkages.
- 
- Central / State Gencos may act as an aggregator of power.
-  Increase  in  quantity  of  coal  for  special  forward  e-auction  for power sector.
- 
- Coal linkage auctions to be held at regular intervals.
- 
- Non-lapsing of short supplies of coal.
-  Annual  Contracted  Quantity  (ACQ)  to  be  determined  based  on efficiency.
-  Payment  of  Late  Payment  Surcharge  (LPS)  has  been  made mandatory.
-  Non-cancellation of Power  Purchase Agreement  (PPA)/Fuel Supply  Agreement  (FSA)/Long  Term  Open  Access  (LTOA)  post National Company Law Tribunal (NCLT) scenario.
-  Non-cancellation of PPA for non-compliance of Commercial Operation Date (COD)'

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