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Govt proposes reduction in power sector funds of states for missing UDAY targets

22 Aug 2019 Evaluate

Power Minister R K Singh said that the Centre has proposed reduction in power sector funds of the states that would not maintain performance benchmarks set under the second version of the Ujwal DISCOM Assurance Yojana (UDAY) scheme, which is at the draft stage. He also said that the government plans the second wave of reforms in the power distribution sector and has shared the draft with states.

Singh has stated that the Centre in November 2015 had launched the UDAY scheme to bring about operational and financial turnaround of debt-laden power distribution companies. He also said ‘we are going to combine the features of UDAY scheme (meant for revival of debt-laden discoms) Deendayal Upadhyaya Gram Jyoti Yojana (DDUGJY) and Integrated Power Development Scheme (IPDS).’

Elaborating further, the Minister said, 'we would add features like system strengthening, expansion of access, loss reduction and reforms in one package. The funds would be targeted towards exceeding those reforms (targets). The funds release would fall if the trajectory of loss reduction (by discoms) and reforms reduce. It would happen quickly.' 

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