Lok Sabha Question No. 4126 (UNSTARRED), answered on 2019-07-18
Subject: Subsidies in Power Sector
Ministry: POWER
Asked by: Chandra Sekhar Sahu

## GOVERNMENT OF INDIA MINISTRY OF POWER

## LOK SABHA UNSTARRED QUESTION NO.4126 TO BE ANSWERED ON 18.07.2019

## SUBSIDIES IN POWER SECTOR

4126.  SHRI CHANDRA SEKHAR SAHU:

Will the Minister of POWER be pleased to state:

(a) whether  the  Union  Government  has  prepared  a  scheme  with  the  State Governments  to  provide  electricity  connection  to  every  poor  household  in  the country and if so, the details thereof;

(b) the steps taken or suggested to plug DISCOMs losses;

(c) whether there is a need to route subsidies in power sector through Direct Benefit Transfer (DBT) and if so, the details thereof;

(d) the steps taken to streamline the subsidies in power sector; and

(e) whether a mechanism is needed to be put in place so that power from most efficient  plants  is  utilized  first  to  bring  down  electricity  prices  and  if  so,  the guidelines issued in this regard?

## 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) : Government of  India  launched  Pradhan  Mantri  Sahaj  Bijli  Har  Ghar Yojana-'Saubhagya' with the objective to achieve universal household electrification by providing electricity connections to all the remaining unelectrified  households  in  rural  and  all  poor  households  in  urban  areas  across the country by March, 2019. Under the scheme free connections are given to poor households,  and  Rs.  500  per  connection  in  10  equal  installment  along  with  bill would be collected from others.

…..…..2/-

(b) : The Government of India launched Ujwal Discom Assurance Yojana (UDAY) in November, 2015 for operational & financial turn around of utilities. The Government has taken several measures to reduce DISCOM losses which includes amongst  others  close  monitoring  of  billing,  collection  and  overall  DISCOM performance,  identification  of  divisions  with  high  AT&C  losses  and  capability building of utilities in reducing AT&C losses. Government of India supports States through  schemes  such  as  Deen  Dayal  Upadhyaya  Gram  Jyoti  Yojana  (DDUGJY) and Integrated Power Development Scheme (IPDS), which help them in infrastructure development as well as reducing losses.

(c) & (d) : As  per  the  provisions  of  Electricity  Act  2003  ('Act'),  Retail  Supply Tariff  is  determined  by the respective State Electricity Regulatory Commissions (SERCs).  As per Section 65 of the Act, State Governments may grant subsidy to any consumer or class of consumers in the tariff determined by the SERCs.  The extant  Tariff  Policy  provides  that  direct  subsidy  is  a  better  way  to  support  the weaker sections of consumers than the mechanism of cross-subsidizing the tariff across the board.

(e) : At present power is procured by Distribution Licenses based on Merit Order  despatch.    A  mechanism  of  Security  Constrained  Economic  Despatch (SCED) for Inter State Generating Stations pan India has been issued by Central Electricity Regulatory Commission on 31.01.2019.

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