UDAY Power Debt in Retrospect and Prospects: Analyzing the Efficiency Parameters
Amandeep Kaur and
Working Papers from eSocialSciences
The Government of India launched the Ujwal DISCOM Assurance Yojana (UDAY), in November 2015, with an objective of â€œPower for Allâ€ . Under the UDAY scheme, selected States agreed to convert 75 per cent of the DISCOMâ€™s (State Power Distribution Companies) power debt into State government non-SLR bonds, priced at not more than 75 basis points above the prevailing cut-off yield rate of government security of 10-year maturity. At aggregate level, so far, around 86 per cent of UDAY bonds have been issued - Rs. 2.32 lakh crores out of Rs. 2.69 lakh crores - across all UDAY States/UTs. Our estimates reveal that the financial and operational efficiency parameters envisaged in UDAY tripartite MoUs â€“ between DISCOMs, the State Governments and the Ministry of Power, Government of India â€“ have not been met by many States. Using UDAY portal data, we find that the average AT&C (Aggregate Technical and Commercial) losses that should have been 15% for all the participating states by 2018-19, presently, on average, stand at 25.41%. Yet another financial indicator, ACS-ARR gap (the gap between Average Cost and Average Revenue) has also widened for many UDAY participating states. The power tariff revisions have also not been implemented in the States -due to political economy reasons - and the operational parameters in our analysis indicate widening inefficiencies across States in power infrastructure.
Keywords: eSS; Power infrastructure; Power Debt; Bonds; Financial efficiency; Ujwal DISCOM Assurance Yojana (UDAY); DISCOMâ€™s (State Power Distribution Companies); power debt; government security; power infrastructure. (search for similar items in EconPapers)
Note: Institutional Papers
References: View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
http://www.esocialsciences.org/Download/repecDownl ... AId=12968&fref=repec
Working Paper: UDAY Power Debt in Retrospect and Prospects: Analyzing the Efficiency Parameters (2018)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:ess:wpaper:id:12968
Access Statistics for this paper
More papers in Working Papers from eSocialSciences
Bibliographic data for series maintained by Padma Prakash ().