The Central government proposed to again discipline state power utilities by linking funds under the Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY) and the Integrated Power Development Scheme (IPDS) with credible reforms by way of time-bound reduction in losses and ensuring uniform metering.
Power Minister R.K. Singh told state energy ministers on Friday that a new scheme will soon be announced after merging the DDUGJY and the IPDS that will make Centre’s funding to states conditional. The states or UTs whose distribution companies (discoms) are not in loss will have no problem in getting the funds but the states/UTs whose discoms are in loss will have to give a proper plan as to how they are going to eliminate the losses to get funds.
The minister added that State/UT governments will get some flexibility in the new scheme to enable them to plan according to their specific needs. He said that despite central funds to improve the infrastructure in power sector, the same situation keeps repeating itself due to lack of non-adherence to loss reductions trajectory.
That is why adhering to new scheme to link the funding to the reforms is proposed, he said.