The Union Power Ministry has recommended that the power distribution companies provide direct subsidies to agricultural consumers and kick off a transfer policy linked to performance for the staff that submit their respective action plans to get inducted in the central government’s Rs 3.03 lakh crore reforms scheme in the sector.
The initiative involves installing 250 million smart meters, 400,000 km of low tension overhead lines and 10,000 feeders.
The separation of the 10,000 feeders will be carried out through the 20,000 crores worth financial outlay of the Pradhan Mantri Kisan Urja Suraksha Evam Utthan Mahabhiyan scheme that targets solarizing all feeders and providing additional sources of income to farmers.
Discoms will have to secure a go-ahead from their state cabinets, following which a tripartite agreement will be signed between the state, discoms and the nodal agencies regarding the same.
The state power distribution firms will have to send in their applications with plans for loss reduction along with strengthening the network and enhancing the financial performance by 31 October. The measures for reform and the trajectories for every discom will be rounded up separately.
The indicative list of reforms suggested by the power ministry includes measures such as swift payment of electricity bills by government departments, direct benefit transfers (DBT), non-creation of regulatory assets, a roadmap to funding accumulated losses, and annual tariff revision, The Economic Times.
As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.
Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.
We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.
Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.