1. States implementing UDAY likely to miss loss reduction target: Crisil

States implementing UDAY likely to miss loss reduction target: Crisil

States implementing the UDAY scheme for revival of their electricity distribution companies will likely miss the target to bring their losses down to zero by 2019 but they could achieve a significant reduction in the underrecoveries on every unit of electricity supplied, ratings agency Crisil said on Thursday.

By: | Updated: October 21, 2016 7:03 AM
It said the 15 states that have signed MoUs under UDAY will reduce the gap between the discoms’ cost of supply and revenue realised per unit to 28 paise in FY 19 from 64 paise in the last fiscal. (Source: Reuters)

States implementing the UDAY scheme for revival of their electricity distribution companies will likely miss the target to bring their losses down to zero by 2019 but they could achieve a significant reduction in the underrecoveries on every unit of electricity supplied, ratings agency Crisil said on Thursday.

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It said the 15 states that have signed MoUs under UDAY will reduce the gap between the discoms’ cost of supply and revenue realised per unit to 28 paise in FY 19 from 64 paise in the last fiscal.

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The firm said the failure to meet target by will primarily be due to lower-than-expected reduction in aggregate technical and commercial losses (AT&C) and inadequate tariff hikes.

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