The Government of India and the State of Sikkim signed a MOU under the Scheme Ujwal DISCOM Assurance Yojana (UDAY), for operational improvement of the State’s Power Distribution Department.
With the signing of MoU, the total number of States covered under UDAY has reached 22.
Sikkim would derive an Overall Net Benefit of approximately Rs. 207 crores through UDAY by way of cheaper funds, reduction in AT&C and transmission losses, interventions in energy efficiency, etc. during the period of turnaround.
The MoU paves way for improving operational efficiency of the Power Distribution department of the State. AT&C losses and transmission losses would be brought down through compulsory distribution transformer metering, consumer indexing & GIS mapping of losses, upgrade/change transformers, meters etc., smart metering of high-end consumers, feeder audit etc., besides eliminating the gap between cost of supply of power and realisation.
The reduction in AT&C losses and transmission losses to 15% and 3.50% respectively is likely to bring additional revenue of around Rs. 179 crores.