In July 2021, the Union power ministry approved the Revamped Distribution Sector Scheme (RDSS) with a total outlay of Rs.3 trillion. Among other things, this massive scheme involves the deployment of smart prepaid energy meters, on a nationwide basis.
The Union power ministry very recently proposed that 33kV grid infrastructure should be moved from state discoms to state transcos. Such infrastructure, referred to as “sub-transmission” has so far always come under the purview of discoms.
In the first week of August, Power Grid Corporation of India Ltd (PGCIL) announced that it commissioned its first-ever intrastate project in the TBCB (tariff-based competitive bidding) route. The project in question was the Jawaharpur-Firozabad transmission schemes in Uttar Pradesh.
The power ministry recently allowed power distribution companies to exit from power purchase agreements (PPAs) related to power generation plants that have completed 25 years of operation. This is, prima facie, a positive step.
According to the latest information available on the government portal PRAAPTI, the total dues of state government-owned power distribution companies (discoms) as of July 31, 2020 was nearly 37 per cent higher than the comparable level in 2019.
Let us momentarily leave the devastation caused by the COVID-19 pandemic in terms of human life and economy aside. One must admit that the pandemic has imparted several lessons ranging from how humans should lead their lives right up to how nations should be run.
The Union finance minister in her Budget speech on February 1, 2020, acknowledged that taking electricity to every household was a major achievement. She obviously was referring to the Saubhagya scheme that was launched on September 25, 2017 and envisaged complete electrification of all households (rural and urban) by December 2018.
India has pledged to have 100 GW of grid-connected solar power capacity by December 31, 2022. Out of this, 60 GW is to come from ground-mounted solar plants while 40 GW is envisaged to come from rooftop solar (RTS). According to reliable estimates, India’s total solar capacity stood at 33.8 GW as of September 30, 2019. The worrisome issue is that the performance of RTS is belying even the most conservative expectations. The total quantum of RTS installations is today barely 4 GW, which is just about 10 per cent of the 2022-target.
Aggregate financial losses by state power distribution utilities (discoms) reportedly stood at Rs.28,369 crore as of March 31, 2019, nearly doubling from the corresponding Rs.15,049 crore in 2018. After the launch of the UDAY scheme in 2015, there was a secular trend of decline in such losses during FY16 and FY17. This reversal of trend is worrisome.
A recent report by Central Electricity Authority (CEA) states that renewable energy procurers, mainly state-owned distribution companies, owe over Rs.8,200 crore to power producers in the renewable energy space—solar, wind, small hydropower, etc. As of July 31, 2019, outstanding dues amounted to Rs.8,231 crore, the report states.
