The Union Power Ministry has said that it will offer additional financial support to Discoms that are doing commendable work in reducing losses and installing smart meters.

During the ongoing two-day review, planning and monitoring (RPM) meeting of the power sector, which commenced on January 18, the centre and states held deliberations on the status of the Revamped Distribution Sector Scheme (RDSS).

The two-day RPM meeting will deliberate on distribution, rooftop solar, green hydrogen, green appliances, PM KUSUM, Rights of Consumer Rules, viability of Discoms, progress of RDSS, state-wise stability of power supply and state-wise detail of steps taken to meet the demand and resource adequacy, among others.

Addressing the meeting, Power Secretary Pankaj Agarwal emphasised that some Discoms have not made much progress in taking up loss reduction works as well as smart metering works under RDSS, Power Ministry said.

He said that in case of inability on part of any Discom to fully utilise the gross budgetary support released to it, the same may be informed to the Ministry well in advance, for allocating the unutilised funds to some other progressive Discoms, it added.

Viability of Discoms

Addressing the meeting earlier on January 18, Power Minister R K Singh emphasised that there will be no “compromise” on the viability of the sector.

Noting that the need to add capacity to meet growing energy requires investments, Singh said, “If discoms are not viable, investments will not come, capacities will not be set up, we will not have energy for our growth, we will not be able to pay for electricity, and then, India will never become a developed country.”

The Minister asked the states to follow the laws and various rules in order to ensure the viability of the power sector. 

“Otherwise, you will not get any power from the Centre, you will not get any loan from PFC or REC. If there is any instance of tariff not being up-to-date, tariff not being cost-reflective, or subsidy not being paid, requisite action under the law will be taken. And because we have laid down all these provisions in the law, the concerned people will be prosecuted,” Singh emphasised.

Loadshedding

Singh said, “I do not accept a future where India continues to be a developing country. The difference between this future and that of a developed country is very simple: there is no loadshedding in a developed country, every discom has money to buy power, people’s rights are respected and disruption to power happens once in 20 – 25 years.” 

Hence, the Minister said that load shedding will be penalised.

“It is an insult to the people. You have to add capacity, sign power purchase agreements (PPAs) and ensure resource adequacy. You have to become more efficient,” he stressed.

The Minister pointed out that while billing efficiency has gone up, collection efficiency remains stuck at 92.7 per cent. 

“So, we have come a long way, but we still have not arrived. The ACS-ARR gap has gone up from 15 paise to around 45 paise, which is a cause of some concern. Load shedding still happens in some states. Load shedding is going to be history,” Singh added.

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