Integrated Power Development

Scheme – IPDS
&
UDAY
Presented by,
Anwaya S P- 20PGDM00B003
Kumar Ravi- 20PGDM00B010
Shubham Awasthi- 20PGDM00B023
 Strengthening of sub-transmission and
distribution network in the urban areas;
IPDS was
Launched on
December 2014 Metering of distribution transformers
by Ministry of /feeders / consumers in the urban areas.
Power, GoI with
the objectives of:
IT enablement of distribution sector and
strengthening of distribution network
Objectives of the scheme is
to ensure:
The objectives is to be fulfilled by
24x7 power supply for identifying and addressing critical
consumers in urban gaps in sub-transmission and
area distribution network considering all
relevant parameters to arrive at
broad scope of work to be
implemented under the scheme.
Reduction of AT&C
losses as per trajectory
(discom-wise)
Eligibility:

All Power Distribution Companies

providing access to all (Discoms) are eligible for financial
urban households. assistance under the scheme.
Components of IPDS

1 Strengthening of sub-transmission and distribution network

2 Metering

3 lT application-ERP and Customer Care Services

4 Provisioning of Solar Panels

5 Ongoing works of R-APDRP to be completed

Budgetary Support & Outlay

• The components in I and II above are expected to cost Rs

32,612 crore, including Rs 25,354 crore in financial support
from the Government of India during the course of the
implementation term.

• R-APDRP scheme cost of Rs 44,011 crore would be carried

forward to the new IPDS scheme, including a budgetary
assistance of Rs 22,727 crore that has already been
authorised by CCEA.
 Summary (Cost in  Cr.):

Approved
Project + PMA Total GoI Grant
Released
Cost

System Strengthening 28494.75 15318.902

IT Phase-II 756.91 235.717
ERP 631.9 224.0514
Smart Metering 386.39 38.17
RT-DAS 153.55 34.058
GIS Sub-station 903.98 356.05

Grand Total Approved Cost 31327.48

Grand Total GoI Released 31327.48

As per www.ipds.gov.in

GoI grant :
60% of project cost (85%
for sp. cat states)
placement of Award by utility.
Discom contribution (own
Funding
fund) : 10% of project cost
Mechanism
(5% for sp. cat states)
Lender (FI/Banks) (loan) :
30% of project cost (10%
for sp. cat states)
10% of GoI grant on approval
of DPRs and signing of
Bipartite/Tripartite
agreement
20% of GoI Grant on
60% of GoI grant on
utilisation of 90% of grant
released by GOI and 100%
release of Discom
contribution.
10% of GoI grant after
completion of works.
 IPDS (as on 13.11.2020):

• Under the scheme, system strengthening of sub-transmission and

distribution network has been completed in 448 circles cumulatively
covering over 3000 towns.

• In AP-East, Telangana, and Uttarakhand, all smaller towns have been IT-
enabled under IPDS for enhanced consumer services and other purposes.
IPDS has also financed Enterprise resource planning (ERP) across various
utilities for better work flow management, with 11 utilities having
completed the installation.

• In various states, 98 Gas Insulated Switchgear (GIS) Substations are being

built. All 1290 towns have been IT enabled under the previous initiatives
merged under IPDS, and 57 towns have finished SCADA systems. In 1197
towns, system strengthening work has been completed.
The major achievements are as follows:

927 new 33/11 kV Power Sub-Stations (PSS) have been commissioned, with more
than 1500 existing PSS having their capacity augmented.

For better power reliability, over 33,000 ckm of new overhead lines charged.

To decrease losses, more than 75,000 ckm of underground/aerial bunched cables

were installed.

Approximately 56,000 new Distribution Transformers have been charged to

improve power supply in cities.

As a contribution to green energy, some 45 MWp of solar panels have been put on
government buildings and substations.

More than 1.15 million smart metres have been deployed.

IPDS different from earlier schemes for urban
distribution sectors
• Unlike previous distribution schemes such as R-APDRP, which were
confined to towns with a population of 30000 or more (10,000 or
more for special category states) as of Census 2001, IPDS
encompasses the complete urban area of distribution utilities..

• Unlike the R-APDRP scheme, which allowed for a maximum loan

conversion of 50% and a maximum grant of 90% (for spl cat states)
subject to a reduction in AT&C loss, the IPDS scheme allows for a
maximum loan conversion of 75 percent (90 percent for spl cat
states) with additional grant tied to the achievement of the
scheme's milestones.
Ujwal DISCOM Assurance
Yojana- UDAY
A LOOK:

• UDAY stands for Ujjawal DISCOM Assurance Yojana

• UDAY is an integrated approach of three ministries- MoP , MoC ,

MNRE

• Launched on 9th Nov 2015

• A total of 27 states and 5 UTs have adopted UDAY

scheme for financial and operational improvement
OBJECTIVES OF UDAY:

• Reduction in cost on interest of DISCOMS through debt

takeover by states

• Improving operational efficiency of DISCOMS

• Reducing cost of power procurement

• Enforcing Financial discipline on DISCOMS

ADVANTAGES OF UDAY:

Industry &
•
Consumers • Reduction in
24x7 Power for all
• Energy security investment
through coal and • Reduction in cost of uncertainty
renewables Power • Low risk for existing
• Access of 24x7 investment in power
power , improving sector
the quality of life
Government Banks
 NEED FOR UDAY:

Poor Quality and Revenue gap 73

reliability of Paise per Unit
Power supply

DISCOM Losses
AT&C Losses
26%
High Cost of High Interest Poor Revenue High Line (AT&C)
Power Costs collection Losses

Adverse Annual losses

Creditworthiness USD 8.9 Billion
EXPECTED ROADMAP FOR UDAY:

Past Present Future

State take Fiscal

Improve
Lower Cost Discipline
over of Operational
of Power on future
debt Efficiency
debt

State
Enabling provision
Liability in
of Quarterly Tariff
continued
Increase
losses

Reduction in interest cost

EXPECTED OUTCOMES

Reduction of AT&C loss to 15% in FY

19

Reduction in revenue gap to zero by

FY 19

All DISCOMs to be profitable by FY 19

or FY 20
STEPS FOR OPERATIONAL IMPROVEMENTS :

Consumer Indexing Feeder and DT

Feeder segregation
and GIS mapping metering

Demand Side
management: LED
Smart metering Anti-theft campaigns
lamps, Agricultural
pumpsets, PAT scheme
STEPS FOR REDCING THE COST OF POWER:

Support efficient plants for Power production

Reduction in coal transportation; lower costs

Measures for faster completion of Transmission lines

Coal price rationalization, Higher supply, etc

EARLY TRENDS OF UDAY

15 States and 1 Union Territory joined already

Debts worth Rs USD 37 Billion addressed; Borrowings worth USD 25 Billion

done.

Early trends encouraging

Reduction in losses and revenue gaps

Cost of Power generation down 10% in Q1 FY 17

USD 330 million saved in interest costs in Q1 FY17 over Q1 FY16

WHAT WENT WRONG
 However, the indications are that the turnaround as envisaged by UDAY hasn’t
materialised, with several targets being missed.

 Burgeoning AT&C Losses: At the aggregate level, the AT&C losses for major states stood
at 19.05% as against the target of reducing them to 15% by the end of 2019.

 High ACS-ARR Gap: While the ACS-ARR gap was supposed to be eliminated by 2019, it
remains as high as Rs 0.25 per unit.
 Mixed Progress: Operational efficiency targets under UDAY, such as the installation of
feeder metering, smart metering and feeder segregation, are still not completely met.

 Inadequate Power Subsidy: Also, the power subsidy released by state governments to

DISCOMS appears to be inadequate. As a result, DISCOMS have reported financial losses
to the tune of Rs 21,658 crore at the end of 2019, reversing the declining trend since
the launch of UDAY.

 Economic Roadblock: Further, UDAY bonds were issued at a premium, due to this, the
cost of debt servicing has gone up for the UDAY states. The impact on state finances is
likely to continue due to interest payment on UDAY bonds and redemption of these
bonds. This makes for a grim prospect for most states combating a tight fiscal situation
amid a continuing slowdown.
SUGGESTIONS:

• Government's announcement of the launch of UDAY 2.0 which

seeks installation of smart prepaid metres, prompt payment by
DISCOMS, making coal available for short term and reviving gas-
based plants is a step in the right direction.

• There is an urgent need to address the issues of burgeoning

outstanding dues of DISCOMS towards power generators and
stressed projects that are being dragged under insolvency
proceedings.

• Formulation of pragmatic power tariff policy is the need of the

hour because without a financially viable power sector and
subsequently, socio-economic growth of India will suffer.
THANK YOU