Explanation: Without improving the performance of the electricity distribution companies (DISCOMs) of the state government’s efforts towards 100 per cent village electrification, 24×7 power supply and clean energy cannot bear fruit.

• Power outages also adversely affect national priorities like ‘Make in India’ and ‘Digital India’.
• In addition, default on bank loans by financially stressed DISCOMs has the potential of seriously impacting the banking sector and the economy at large.
• For financial and operational turnaround of DISCOMs and to ensure a sustainable permanent solution to the problem, the UDAY (Ujwal DISCOM Assurance Yojana) was launched by the GoI, in November 2015.
• The scheme also aims to reduce interest burden of the DISCOMs, cost of power and their AT&C (Aggregate Transmission & Technical) losses.

Source: TMH Ramesh Singh