New Delhi:  Mizoram has become the 27th state to join UDAY scheme meant for revival of debt-stressed discoms which will help it get overall benefits of Rs 198 crore during the period of turnaround.

“The Government of India and the State of Mizoram signed a Memorandum of Understanding (MOU) under the scheme Ujwal DISCOM Assurance Yojana (UDAY) on March 31, 2017 for operational improvement of the state’s Power Distribution Department,” a Power Ministry statement said.

According to the statement, with the signing of MoU by Mizoram, the total states/Union territories covered under UDAY will be 27.

Mizoram would derive an overall net benefit of about Rs 198 crore by way of cheaper funds, reduction in aggregate technical and commercial (AT&C) and transmission losses and interventions in energy efficiency during the period of turnaround.

The reduction in AT&C losses and transmission losses to 15 per cent and 2.50 per cent respectively is likely to bring additional revenue of around Rs 166 crore during the period of turnaround, it added.

Demand side interventions in UDAY such as usage of energy- efficient LED bulbs, agricultural pumps, fans, air- conditioners and efficient industrial equipment through PAT (Perform, Achieve, Trade) would help in reducing peak load, flatten load curve and thus help in reducing energy consumption in the state. The gain is expected to be around Rs 30 crore.

While efforts will be made by the Power Distribution Department of the state to improve their operational efficiency, and thereby reduce the cost of supply of power, the Central government would also provide incentives to Mizoram for improving power infrastructure and for further lowering the cost of power.

Central schemes such as DDUGJY, IPDS and Power Sector Development Fund are already providing funds for improving power infrastructure in the state and additional/priority funding would be considered under these schemes if the state/discoms meet the operational milestones outlined in the scheme, the statement added.

Further, with improved efficiency, the State Power Department would be in a better position to borrow funds at cheaper rates.

The ultimate benefit of signing the MoU would go to the people of Mizoram. Reduced levels of transmission and AT&C losses would mean lesser cost per unit of electricity to consumers, it said.

Further, financially and operationally healthy State Power Distribution Department would be in a position to supply more power. Higher demand for power would mean higher PLF of generating units and therefore, lesser cost per unit of electricity, which would again mean lesser cost per unit of electricity to the consumers.

The scheme would also allow speedy availability of cheaper power to 22,007 households in the state that are still without electricity.

Availability of 24X7 power to hitherto unconnected villages/households would boost the economy, provide more employment opportunities and improve the standard of living of the people of Mizoram, it added.