The Government of India, the State of Punjab and the DISCOM of Punjab (Punjab State Power Corporation Limited-PSPCL), signed a tripartite memorandum of understanding (MoU) under the Ujwal DISCOM Assurance Yojana (UDAY) in New Delhi on Thursday for operational and financial turnaround of the Power Corporation. The signing ceremony was held in the presence of Minister of State for Power Piyush Goyal and Punjab Deputy Chief Minister Sukhbir Singh Badal.
The MoU was signed on behalf of Ministry of Power by Joint Secretary AK Verma and Principal Secretary Power Punjab A. Venu Prasad and on behalf of DISCOM by KD Choudhary, chairman & MD, PSPCL.
On the occasion, Goyal said that under UDAY scheme union government would focus on developing rapid growth and bring about paradigm change in power infrastructure in the states. He said this central scheme would ensure a permanent solution to the debt-ridden power utilities to achieve financial stability and to improve their operational efficiencies, for sustained growth. He assured that all targets given in the MoU would be achieved.
The scheme UDAY had been launched by the Union government to ensure a sustainable solution to enable the power utilities to break out of long standing debts. Besides, it would make the DISCOMs financially independent and operationally healthy, to be able to supply adequate power at affordable rates, through 100 percent rural electrification and 24X7 power for all.
Speaking on the occasion, Badal said that Punjab had already achieved the status of power surplus and under this agreement the union government would facilitate Punjab to take over 50 percent of the outstanding debt of the PSPCL in the year 2015-16 and 25 percent of the outstanding debt in the year 2016-17.
He said the MoU would facilitate to increase supply of domestic coal to Punjab DISCOM, ensuring rationalization of coal linkages, liberally allowing coal swaps from inefficient plants to efficient plants and from plant situated away from mines to pithead plants.
He said under this agreement PSPCL would replace existing street lights with LEDs in all municipal towns through urban local bodies and endeavour to reduce the transmission losses from 3.8 percent to 2.5 percent by 2018-19. Besides, power utility would make efforts to improve efficiency of state generating units and reduce AT&C losses to 14 percent by 2018-19 and it will likely to bring additional revenue of around Rs. 1600 crore to PSPCL during the period of turnaround.