Hyderabad: The Centre has come up with a scheme Ujwal Discom Assurance Yojana, as part of which it has proposed revision of power tariff once every three months. The UDAY scheme is aimed at bailing and restructuring the Discoms all over India which are neck deep in losses due to mismanagement of power distribution companies in respective states.
The Union Power Ministry has sent a letter to Telangana Energy Department about the UDAY scheme and asked the state government whether it is interested in joining the scheme. If the TS government is interested, it needs to reply to the Centre by the month end and get ready for quarterly revision of power tariff.
The scheme envisages quarterly revision of power tariff in tune with the fluctuating prices of coal, natural gas and oil in the international market. Though not exactly but the power tariff revision every three months comes close on the heels of petrol and diesel hike. The Centre has suggested that a quarterly revision will not have a bad impact on the government and save people from heavy burden. Besides, revision of tariff four times in a year will result in citizens getting used to it.
However, the UDAY scheme is optional and any state government can opt to stay out of it. But if it wants to be part of it, it has to go for amendment of its tariff revision rules. As part of the scheme, the Union Ministry has proposed that power distribution companies (discoms) in select states can convert their debt into state bonds, as well as roll out a host of steps to improve efficiency in power plants.
PPAs turn huge burden for telangana discoms
While the TSgenco, TStransco and two TSDiscoms should be given credit for living up to the promise of the CM that there would be no power cuts in Telangana, lack of generation by TSGenco plants and the PPAs signed with private companies in anticipation of power demand have spelt financial doom for TSdiscoms. Most of the PPAs extend up to May 2016.
With GHMC elections round the corner, the TRS government is in no mood to allow a power tariff hike. Meanwhile, officials of TStransco and Genco have written to the government seeking Rs 5,000 crore to bail out the Genco and Discoms.
“If not the government, who will come to the rescue of Discoms which have ensured no power cuts for more than a year now? Give credit to Genco and Transco officials too. Though the Centre has agreed to restructure the loans of Discoms, it will take its own sweet time,” said a senior official in the Energy department.
Officials defended the PPAs stating that there was no other option as Hyderabad was facing four to six hours power cuts. Even after taking the power available from Central stations, there was a huge gap of 40 to 60 MU daily, they said.
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