The Government of India and the Union Territory of Lakshadweep signed a Memorandum of Understanding (MoU) under the Scheme Ujwal DISCOM Assurance Yojana (UDAY) today, for operational turnaround of the Union Territory’s Electricity Department. An overall net benefit of approximately Rs. 8 crore would accrue to Lakshadweep by participating in UDAY, by way of cheaper funds, reduction in AT&C losses, interventions in energy efficiency, etc. during the period of turnaround and will continue in future years.
The MoU paves way for improving operational efficiency of the Electricity Department of the Union Territory (UT). Through compulsory Distribution Transformer metering, consumer indexing & GIS mapping of losses, upgrade/change transformers, smart metering of high-end consumers, feeder audit etc., AT&C losses and transmission losses would be brought down, besides eliminating the gap between cost of supply of power and realisation. The reduction in AT&C losses to 10.00 per cent is likely to bring additional revenue of around Rs. 3 crore during the period of turnaround.
Demand Side interventions in UDAY such as usage of energy-efficient LED bulbs, agricultural pumps, fans & air-conditioners and efficient industrial equipment through PAT (Perform, Achieve, Trade) would help in reducing peak load, flatten load curve and thus help in reducing energy consumption in the Union Territory of Lakshadweep. The gain is expected to be around Rs. 3 crore.
While efforts will be made by the Electricity Department of the Union Territory to improve their operational efficiency, and thereby reduce the cost of supply of power, the Central Government would handhold the UT Administration for improving Power infrastructure in the Union Territory and for further lowering the cost of power. The Central schemes such as Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY), Integrated Power Development Scheme (IPDS), Power Sector Development Fund or such other schemes of the Ministry of Power and the Ministry of New and Renewable Energy (MNRE) are already providing funds for improving Power Infrastructure in the Union Territory and additional/priority funding would be considered under these schemes, if the UT/Electricity Department meets the operational milestones outlined in the scheme.
The ultimate benefit of signing the MOU would go to the people of Lakshadweep. An operationally healthy DISCOM would be in a better position to supply reliable 24*7 power to the consumers, the Service Sector and Industry alike.
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