State power distribution companies have sharply reduced commercial losses and interest costs with Uday scheme.

The average power generation cost in the country has also come down by 13% to Rs 2.77 per unit in the three-month period ending June from Rs 3.19 per unit during April-June of 2015, a senior power ministry official said.

Preliminary data available with states for the first quarter of the current financial year shows that most states have reported reduction in the aggregate technical and commercial losses, which include electricity that goes unbilled due to non-metering and pilferage. The commercial losses in Jharkhand have declined to 31.8% during the three month period from 41% before joining Uday, showed the provisional data available with the state.

Uttar Pradesh that goes to polls next year has reported a fall in commercial loss to 33% in first quarter of the current financial year from the 34.2% in the corresponding period last year. The commercial losses in Rajasthan have decreased to 27.3% from 28.5%, while Punjab’s aggregate losses have fallen to 16.6% from 15.9%.

The interest cost outgo of the state power distribution utilities has also reduced following takeover of debt by respective state governments. The interest burden of Uttar Pradesh power distribution companies has nearly halved to Rs 820 crore during April-June this year against Rs 1,742 crore in the corresponding quarter last fiscal. In Rajasthan, electricity distribution companies paid Rs 1,038 crore towards interest against Rs 1,961 crore in April-June quarter last financial year. Punjab posted Rs 166 crore savings and Haryana Rs 187 crore on interest outgo.

Uday aims at enabling discoms to turn profitable in the next 2-3 years through four initiatives —improving operational efficiencies, reducing cost of power, interest burden and enforcing financial discipline through alignment with state finances.

The scheme mandates states to take measures like compulsory smart metering, upgrade of transformers and meters, promoting energy efficient LED bulbs, agricultural pumps, fans and air-conditioners to reduce commercial losses from 22% to 15% and decrease gap between cost of power and tariffs.

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