8 years of the Modi Govt –Transformation of the power sector
Contd from previous issue
The Government has made the provision of a Letter of Credit compulsory for the flow of power and brought down the late payment surcharge from 18% to 12%. For the first time in the history of the Power Sector, we have laid down Rules spelling out the Rights for Consumers which include timelines for the grant of connection, for replacement of defective meters, correction of bills etc. The process of recovery of costs due to a ‘Change in the Law’ has been simplified under the Modi Government. We have put in place Rules to provide for flexibility in scheduling, providing for the most efficient generating stations to be scheduled first.
This has reduced the cost of power for consumers. We have separated the CTU from POWERGRID to bring in transparency. The Rules for connectivity to the transmission network have been simplified by putting in place General Network Access Rules.
We have expanded the market – bringing in the Real-Time Market; and putting in place separate Term Ahead and Day-Ahead Market for Renewable Energy. We have provided for the bundling of Renewable Energy with Thermal Energy and Bio-Mass cofirings in thermal power plants. We also provided for GENCOS to be able to sell power in the Exchange in case it is not scheduled by the PPA holder.
In order to ensure the viability of the system and bring in financial discipline, the Government has made fund flows under all schemes and grant loans from PFC and REC conditional on their undertaking reforms. As a result of this 36 DISCOMs have agreed to timelines for the reduction of AT&C losses and ACS-ARR gap as well as clearance of subsidy and government dues. Corporate Reforms are being put in place in DISCOMs. We have put in place a new Rating System for Distribution Companies which puts reforms in governance of DISCOMs at the forefront.
The scale of comprehensive reforms undertaken across the entire plethora of the power system is unparalleled by any other period of the previous governments. Before this no other government had ever touched Distribution Sector Reforms. In line with the vision of the PM Narendra Modi, we are working towards a brighter India, with the mission of “power to the future of the nation”.
The writer is Union Minister for Power and New & Renewable Energy