‘Under UDAY 2.0, sops for Discoms will be target-driven’
The next leg of power distribution reforms will be led by the Ujwal Discom Assurance Yojana 2.0 and a tariff policy that aims to rein in errant distribution utilities. Unlike its predecessor, UDAY 2.0 will be stricter with budgetary allocation to incentivise Discoms for good performance, Minister of State (Independent Charge) for Power and Renewable Energy, RK Singh told BusinessLine. Excerpts:
The Finance Minister has said the next leg of power distribution company reforms is in the offing after a review of UDAY. How should one interpret this?
The Finance Minister said that we will roll out a scheme that will be different from the earlier ones. It will combine UDAY with the development funds for strengthening the power distribution system. Because the two are combined, the infusion of funds for strengthening the system will be linked to achievement of milestones under UDAY 2.
