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he power distribution segment is one of the most important Where we stand Upadhyaya Gram Jyoti Yojana), IPDS (Integrated Power Develop- • In order to improve the performance of the distribution sec-
link in the power sector with DISCOMs (distribution compa- ment Scheme) and SAUBhAGYA (Pradhan Mantri Sahaj Bijli har Ghar tor, a number of attempts have been made by Government of
Tnies) being the backbone of the electricity supply market, Power distribution utilities today in most of the states are state gov- Yojana) have shown marked progress. India. These include legal and regulatory reforms under the
connecting end users with generators of electricity. Power distribu- ernment owned entities, with a license to supply power in the area • The distribution sector is now buzzing with endeavors in- electricity Regulatory Commissions Act, 1998, and the elec-
tion utilities today in most of the states are state government owned of their respective states. While competition has been introduced in cluding smart metering by Uttar Pradesh, prepaid metering tricity Act, 2003, which paved the way for competition and
entities, with a license to supply power in the area of their respective power generation and power transmission sectors, competition in by Manipur, IT implementation by Tripura, introduction of altered the industry structure and governance framework.
states. power distribution sector is limited to ‘open access’ through which a energy Audit Software (eAS) by Madhya Pradesh, constitu- • The eA 2003 de-licensed generation and enabled rapid ca-
While competition has been introduced in power generation and power generator or trader can directly supply power to end-consum- tion of anti-theft vigilance squad by Rajasthan, electricity pacity addition through private sector participation. To re-
power transmission sectors, competition in power distribution sec- ers using the network of power transmission and distribution utilities. theft prevention campaigns by haryana, etc. vive the financially stressed sector, the central government
tor is limited to ‘open access’ through which a power generator or Power distribution in a few large cities like Delhi, Mumbai and Kol- • For modernisation of distribution segment, the Government from time to time has initiated bailout packages such as the
trader can directly supply power to end-consumers using the net- kata has been privatized while private participation is also allowed has notified a target of making all meters – smart and prepaid Financial Restructuring Plan (FRP) in 2012-13 and UDAY in
st
work of power transmission and distribution utilities. through Distribution Franchisees, offered by State Governments in over a period of three years starting 1 April 2019. NTPC and 2015-16. Further, government schemes such as DDUGJY, Re-
In the distribution segment, emerging areas like rooftop solar, elec- few towns. POWeRGRID have entered into a joint venture for entering structured Accelerated Power Development and Reforms
tric vehicles, smart meters, storage, ancillary services etc. are going The government has introduced several programmes such as into electricity distribution business. Programme (R-APDRP), and IPDS, aimed at increasing the
to open additional avenues of investment. UDAY (Ujwal DISCOM Assurance Yojana), DDUGJY (Deen Dayal • Under the UDAY scheme, more than INR 36,000 Crores (USD number of connections and strengthening the distribution
5.02 bn) interest cost has been saved by DISCOMs in past network, have been undertaken.
Recent poweR distRibution schemes two years. AT&C losses have come down to 18.76% in FY18 • Govt of India is drafting a national perspective plan to ad-
as compared to 20.77% in FY16 . The current national level dress all the people, process and technology related aspects
1
ACS-ARR (average cost of supply and the revenue realised) required for making the power sector robust and resilient.
2
rEst (rural
Accelerated
Electricity supply 03 electrification of 1 lakh 05 DDuGJY (Deen Dayal 07 gap is at 26 paisa/unit as compared to 58 paisa/unit in FY16 . The plan would aim at sustaining the goal of 24X7 uninter-
upadhyay Gram Jyoti
electRiFication technology Mission villages & 1 Cr HHs Yojana) States like Gujarat, himachal Pradesh, Karnataka, Kerala, rupted Power for all with increasing demand of electricity by
99.99% households Tamil Nadu, Telangana, Dadra & Nagar haveli and Daman & consumers. The plan would lay emphasis on 100% metering
PMGY (Pradhan Accelerated rural rGGVY (rajiv saubhagya (Pradhan electrified Diu have already achieved less than 15% AT&C losses. of all consumers, power reliability and availability. Addition-
01 Mantri Gramodaya 02 Electrification 04 Vidyutikaran Yojana) 06 Har Ghar Yojana) • India’s rank in World Bank’s ease of doing business - “Get- ally, the plan also envisages conversion of all electricity con-
Gandhi Grameen
Mantri sahaj bijli
Programme
Yojana)
ting electricity” Ranking has improved to 24 in 2018 from 137 sumer meters into smart meters in prepaid mode within the
in 2014. next three years. Smart metering would empower consum-
• A national perspective plan at the distribution level is being ers with tools to help them conserve energy and plan their
drafted by Central electricity Authority (CeA), with needs of electricity usage in an efficient and optimum manner.
APDP (Accelerated APDrP (Accelerated restructured iPDs (integrated the consumers at the centre of its focus. The plan anticipates • To facilitate state utilities to ensure quality and reliable 24x7
Power Development Power Development & APDrP Power Development
netwoRk 1,388/1405 towns an increase in distribution sub-station capacity of 38% and power supply in the urban areas, Government of India had
stRengthening Programme) reform Programme) scheme) it enabled in distribution transformation capacity of 32% as well as an launched IPDS in 2014 for strengthening of sub-transmission
85% of 11kV increase in feeder lengths of 27-38% till 2022. and distribution networks in the urban areas, metering of
01 02 03 04 feeders being distribution transformers, feeders and consumers in the ur-
monitored online
opportunities ban areas and IT enablement of distribution sector among
others.
• The viability and efficiency of the distribution segment
would be critical to attract investments into other segments
of power sector value chain. The overall investments and ef- in the distribution segment, emerging
Discom Financial restructuring uDAY ficiency of the power sector has significant impact on the
Financial of state Distribution (ujwal Discom areas like rooftop solar, electric vehicles
RestRuctuRing Companies Assurance Yojna) ~inr 36,000 (usD overall socio-economic development of the country. There-
5.02 bn) reduction and smart meters are going to open
in book losses of fore, future strategies need to be based on an integrated ap-
01 02 Discoms (FY2016- proach supported by all stakeholders including government, additional avenues of investment
FY2018)
regulator, utility and consumers at large.

32 shaping new energy dimensions energising sustainable & prosperous Future 33