After Punjab joining UDAY scheme, around Rs 1.6 lakh crore debt of power distribution companies have been covered through the programme.
Punjab has become the seventh state on Friday to join UDAY scheme meant for the revival of distribution companies (Discoms) that will help it save Rs 5,475 crore in the next three years under the programme.
Centre is expecting Jammu and Kashmir to formally join UDAY next week as the state has already finalised the terms of the agreement for the scheme.
The other two states, which can sign the formal agreements this month to join the scheme are Andhra Pradesh and Haryana.
After Punjab joining UDAY scheme, around Rs 1.6 lakh crore debt of Discoms have been covered through the programme which is about 37% of total outstanding of Rs 4.3 lakh crore in the country.
The agreement was signed in the presence of Power Minister Piyush Goyal and Punjab Deputy Chief Minister Sukhbir Singh Badal.
On this occasion, Badal said, "Punjab will benefit a lot from the UDAY scheme. The state will save about Rs 5,000 crore. Our electricity department will save Rs 600 crore on account of interest saving alone. Our department will be strengthened further which was working for making Punjab a power surplus state."
Badal further said, "We have initiated talks with the Centre to replace all inefficient agricultural pumps in Punjab with new ones. This will result in more water and save power. We will also talk today to join the LED lights programme."
Goyal said, "We will discuss today to replace all inefficient old agricultural pumps with Mark IV or V efficient pumps in Punjab."
Uttar Pradesh, Bihar, Rajasthan, Gujarat, Jharkhand and Chhattisgarh have already signed the agreement to join UDAY scheme.
Under the scheme, the reduction in the aggregate technical and commercial and transmission losses to 14% and 2.5% respectively in next three years would result in additional revenue of around Rs 1,600 crore.
The other measures under the scheme to increase operational efficiency will result in a gain of around Rs 1,250 crore.
An overall net benefit of approximately Rs 5,475 crore would accrue to the state by opting to participate in UDAY, by way of savings in interest cost, reduction in AT&C and transmission losses, interventions in energy efficiency, coal reforms etc. during the period of a turnaround.
Demand-side interventions in UDAY such as usage of energy- efficient LED bulbs, agricultural pumps, fans and air conditioners and efficient industrial equipment through Perform, Achieve, Trade (PAT) would help in reducing peak load, flatten load curve and thus help in reducing energy consumption in the state of Punjab. The gain is expected to be around Rs 690 crore.
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