The country’s first smart grid project at a cost of Rs 7000 crore would be set up in Haryana’s Gurgaon to ensure uninterrupted supply of power in the city.
Union Minister of State for Power, Coal, New and Renewable Energy, Piyush Goyal held a meeting with Haryana Chief Minister Manohar lal on Monday in New Delhi to review the progress of smart grid project.
Talking to the mediapersons after the meeting, the Union Minister said that the project has been introduced in view of the present and future needs of power supply in Gurgaon city.
He said that this project would put an end to the trend of consumption of diesel through generator sets. This would not only prove beneficial for the conservation of environment, but would also put an end to the role of builders and colonizers for power supply, said he.
Goyal said that this project would prove to be a milestone in the field of power supply in the country.
While describing Gurgaon as an important cosmopolitan city, he said that total transformation of Gurgaon through this project would be another feather in its cap. In the first phase, the project involved an investment of Rs 1382 crore.
The smart grid project would ensure 24X7 quality power supply to the city which depends on diesel gensets due to irregular power cuts. While the State Government would match the Centre’s grant for the project, 60% cost would be met through loans.
Goyal said that Haryana is among the better performing states under UDAY and they would be provided special incentives as central funding for various projects.
During the meeting, Haryana Additional Chief Secretary, Power, Rajan Gupta gave detailed information about the project to the Union Minister.
Notably, the Ujawal Discoms Assurance Yojna (UDAY) aimed at reducing debt burden of Power Discoms, cutting down cost of power and losses to the level of 15 per cent in next three years and to financially turnaround the power distribution companies is implemented in Haryana.
Under UDAY, the central government has allowed states, which own discoms, to take over 75 per cent of their debt as of September 30 and pay back lenders by selling bonds.
Following this, Haryana has taken over Rs 25,950 crore of debt of the total discoms debt of Rs 34,600 crore outstanding as on September 30, 2015.