Chandigarh October 16: Haryana DISCOMs have successfully implemented the Ujwal Discom Assurance Yojana (UDAY) scheme and eliminated the gap of Average Cost of Supply (ACS) and Average Revenue Realised (ARR) two years ahead of the UDAY target. Further the AT&C losses have also been substantially reduced from 30.02 percent in the Financial Year 2015-16 to 17.17 percent in the Financial Year 2019-20. Now, the period specified under UDAY MOU for achieving financial and operational turnaround of DISCOMs has ended.
This was informed in the meeting of State Cabinet which met under the Chairmanship of Chief Minister, Mr Manohar Lal here today.
Haryana Government has successfully implemented Ujwal Discom Assurance Yojana (UDAY) Scheme with the takeover of loan of Rs. 25,950 crore by the State Government and conversion of the entire amount into equity. The takeover of loans by the State Government and their conversion into equity has resulted in savings in interest cost to the extent of Rs. 5,225 crore to the Haryana DISCOMs over the last four years.
The Haryana DISCOMs have achieved operational and financial turnaround thereby meeting the objective of the scheme. DHVBNL has already achieved the AT&C loss target under UDAY in financial year 2018-19. The UHBVNL has achieved a substantial reduction of 12 percent in AT&C losses and is on course to achieving the AT&C loss level of 15 percent.
A tripartite MoU under UDAY scheme of Government of India was signed on March 11, 2016 between the Government of India, the State Government and Haryana DISCOMs. Under this MoU, operational and financial activities were to be achieved by the year 2018-19 and 2019-2020 respectively.
DISCOMs were required to improve the billing efficiency and collection efficiency in order to reduce the AT&C losses. The UDAY MoU provided target for reduction in AT&C losses to 15 percent by Financial Year 2018-19. DHBVN achieved an AT&C loss level of 14.86 percent during the Financial Year 2018-19 which is better than the target.
It is pertinent to mention here that Haryana Discoms have also achieved the financial turnaround without any increase in tariff during last four years whereas the FSA has reduced by over Re. 1 per unit during this period. Further, the tariff for Domestic consumers has been reduced with effect from June 1, 2020.