Objectives of Uday scheme

The participating states and UTs will have to adhere to the following objectives:

Operational Efficiency

 Compulsory Feeder and Distribution Transformer Metering

The states needed to install metering equipment in order to measure losses at the feeder and DT level
so that remedial action can be taken accordingly. The targeted date of completion of the activity was
30th June 2016 and 30th June 2017 for Feeders and Distribution Transformers Respectively.

 Consumer Indexing and GIS mapping of Losses

Geographic Information Systems mapping and Consumer Indexing must be implemented in order to get
an idea of where the losses are occurring in accordance with geographical areas. The targeted date for
the completion of the activity was 30th Sept 2018.

 Change transformers, meters or other components.

In order to reduce technical losses and outages due to outdated equipments a policy to upgrade or
modify those equipment.

 Smart metering of all consumers consuming >=200 units

Target was to provide smart meters to all the consumers who are consuming over 200 units/month.
0Later targets were set to provide consumers consuming over 500 units /month before 31st December
2017 and remaining others before 31st December 2019.

Smart meters has intrinsic characteristics of tamper proofness, displaying charge per Kwh on an
instantaneous basis which will lead to demand side management.

 Demand Side management

For reducing peak load and energy consumption DSM is one very important step: Energy efficient LED
bulbs, pumps, fans & air-conditioners through Perform Achieve and Trade schemes was estimated to
save enough energy which may have otherwise been lost due to technical losses.

 Other tariff based methods like Quarterly tariff revision

Tariff revisions are good way to check and make new strategies in order to incorporate increase in
charges.

 Assurance of increased power supply in areas where AT&C losses reduce.

FINANCIAL TURNAROUND

 States shall take over 75% of the debt held by DISCOM as of 30th September 2015. 50% debt
shall be taken over in 2015-16 and 25% in 16-17.
 States will issue non-SLR including SDL bonds in the market or directly to the respective banks /
Financial Institutions (FIs) holding the DISCOM debt.
 States were required to fund future losses of discoms in a graded manner, starting from 5 per
cent in 2017-18 and going on to 10, 25 and 50 per cent over the three years till 2020-21.

Reduction of cost of power generation

Both Govt of India and States took steps in order to reduce the cost of power production:

GOI took the following steps:

 Increased reliable supply of coal.

The government made and sought new strategies to make coal more reliable.

 Coal price rationalization, Value will be based on Gross calorific value.

Coal prices will be based on the gross calorific value (GCV) of coal as obtained after sampling by a
third party this will not only smoothen the pricing mechanism but also make it more transparent.

 Coal India will also be advised to supply G10 and above variety of coal.

Among 17 grades of non-coking coal with GCV more than 4300 kcal/kg that is G-10 or higher which
have lower heat rate in turn more efficiency.

 Correction in Coal grade slippage through re-assessment of each mine.

The coal available in India for each mine was re-evaluated to give more precise rating in accordance
to the GCV.

 Faster completion of transmission lines and adequate transmission by 31st March 2019, mostly
through competitive bidding.

The power carrying capacities of the grid was to be updated and to fasten the completion of various
pending transmission systems by competitive bidding process.

The steps taken by States include:

 Prospective power purchase through transparent competitive bidding by DISCOMs.

 NTPC will handhold the state generating units to improve overall efficiency.
Target population

 Managing Directors/CEOs of DISCOMs.

 Members of Central Electricity Regulatory Commission and State Electricity Regulatory
Commission.
 Power sector experts.

Sampling Frame

 MD/CEOs/Members of CERC/SERC attending UDAY annual review meeting called by The

Ministry of Power, Govt of India.

Sampling Techniques

 The sampling technique is non-probabilistic judgement sampling. In which we will take best and
worst performing DISCOMs and SERC member of that state DISCOM.

Sampling Size

 The sampling size is taken to be 15.

 5 officials will be selected from the top most performing states.
 5 officials will be selected from the worst performing states.
 1 from each State Electricity Regulatory Commission from each region i.e. North, South,
West & East.
 1 from Central Electricity Regulatory Commission.

Method of data Collection

 The mall intercept technique at the venue of the annual meeting should be the recommended
method of data collection. Anonymity for the data collection is not of a concern because the
interviewees are public figures. The mall intercept is also favorable as the response rate
requirement is high which can only be obtained from mall intercept.