The State Government has informed the Centre that it would participate in the Ujwal Discom Assurance Yojana (UDAY), which is aimed at providing funds for revival of discoms.
The Energy Department sent an application to the Ministry of Power in this regard on Wednesday. The State would get Rs 3,600 crore during next two years under the Central scheme, said sources.
Energy Secretary Rajesh Verma had earlier held discussions with Chief Secretary AP Padhi and ACS Finance R Balakrishnan on the scheme.
Gridco CMD Hemant Sharma has chalked out a detailed plan regarding participation of Gridco in the UDAY.
Chief Minister Naveen Patnaik has also approved the proposal, which was sent to the Union Government. As per the proposal, the State Government will take over Gridco’s loan amount of Rs 3600 crore. This will help the State PSU have a positive net worth. And this positive net worth will help the Gridco to get inter-State trading license to sell surplus power to other States.
For inclusion in the UDAY, the Gridco will have to adhere to the tough targets set by the Union Government like setting up Compulsory Feeder and Distribution Transformer Metering, Consumer Indexing and GIS Mapping of losses.
This apart, it would have to upgrade and change the transformers, meters and smart metering of all consumers consuming above 200 units per month.
It would take measures to bring down AT and C losses to 15 per cent by 2018-19 as per the scheme’s loss Reduction Trajectory.
These all would result in reduction in power purchase cost and consumers would be ultimately benefitted, said an official.