{"id":12624,"date":"2021-08-23T00:00:00","date_gmt":"2021-08-23T00:00:00","guid":{"rendered":"https:\/\/www.nextias.com\/current_affairs\/uncategorized\/23-08-2021\/draft-electricity-amendment-bill-2021\/"},"modified":"2021-08-23T00:00:00","modified_gmt":"2021-08-23T00:00:00","slug":"draft-electricity-amendment-bill-2021","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/23-08-2021\/draft-electricity-amendment-bill-2021","title":{"rendered":"Draft Electricity (Amendment) Bill 2021"},"content":{"rendered":"<p style=\"text-align:justify\"><span style=\"font-size:11pt\"><span style=\"font-family:Arial,sans-serif\"><strong><u><span style=\"font-size:12.0pt\">In News<\/span><\/u><\/strong><\/span><\/span><\/p>\n<ul>\n<li style=\"text-align:justify\"><span style=\"font-size:11pt\"><span style=\"font-family:Arial,sans-serif\"><span style=\"font-size:12.0pt\">Recently, the draft Electricity (Amendment) Bill, 2021 has been sent to the Cabinet Secretary for further consideration.<\/span><\/span><\/span><\/li>\n<\/ul>\n<p style=\"text-align:justify\"><span style=\"font-size:11pt\"><span style=\"font-family:Arial,sans-serif\"><strong><u><span style=\"font-size:13.0pt\">Need for Amendments<\/span><\/u><\/strong><\/span><\/span><\/p>\n<ul>\n<li style=\"text-align:justify\"><span style=\"font-size:11pt\"><span style=\"font-family:Arial,sans-serif\"><strong><span style=\"font-size:12.0pt\">Inefficient Discoms:<\/span><\/strong><span style=\"font-size:12.0pt\"> For years, electricity distribution has remained the sorepoint in the country\u2019s power network. Although States unbundled the vertically integrated State Electricity Boards into generation companies and distribution companies (discoms) to promote competition and efficiency, the discoms have, by and large, remained under the control of the States. <\/span><\/span><\/span><\/li>\n<li style=\"text-align:justify\"><span style=\"font-size:11pt\"><span style=\"font-family:Arial,sans-serif\"><strong><span style=\"font-size:12.0pt\">Huge Losses:<\/span><\/strong><span style=\"font-size:12.0pt\"> At the end of June 2021, the discoms owed over ?90,000 crore to power producers. Thirty Six out of 56 discoms reported aggregate losses of around ?32,900 crore as on March 31, 2020. <\/span><\/span><\/span><\/li>\n<li style=\"text-align:justify\"><span style=\"font-size:11pt\"><span style=\"font-family:Arial,sans-serif\"><strong><span style=\"font-size:12.0pt\">Poor Governance:<\/span><\/strong><span style=\"font-size:12.0pt\"> The discoms are struggling with structural challenges in governance and regulation.<\/span><\/span><\/span><\/li>\n<li style=\"text-align:justify\"><span style=\"font-size:11pt\"><span style=\"font-family:Arial,sans-serif\"><strong><span style=\"font-size:12.0pt\">Chronic Issues:<\/span><\/strong><span style=\"font-size:12.0pt\"> There are chronic problems of underinvestment, line losses and issues in billing, metering, and collection.<\/span><\/span><\/span><\/li>\n<\/ul>\n<p style=\"text-align:justify\"><span style=\"font-size:11pt\"><span style=\"font-family:Arial,sans-serif\"><strong><u><span style=\"font-size:13.0pt\">Key Points of the Amendment<\/span><\/u><\/strong><\/span><\/span><\/p>\n<ul>\n<li style=\"text-align:justify\"><span style=\"font-size:11pt\"><span style=\"font-family:Arial,sans-serif\"><span style=\"font-size:12.0pt\">The broad objectives of the Bill are:<\/span><\/span><\/span>\n<ul>\n<li style=\"text-align:justify\"><span style=\"font-size:11pt\"><span style=\"font-family:Arial,sans-serif\"><span style=\"font-size:12.0pt\">To ensure consumer centricity, <\/span><\/span><\/span><\/li>\n<li style=\"text-align:justify\"><span style=\"font-size:11pt\"><span style=\"font-family:Arial,sans-serif\"><span style=\"font-size:12.0pt\">To promote ease of doing business, <\/span><\/span><\/span><\/li>\n<li style=\"text-align:justify\"><span style=\"font-size:11pt\"><span style=\"font-family:Arial,sans-serif\"><span style=\"font-size:12.0pt\">To enhance sustainability of the power sector<\/span><\/span><\/span><\/li>\n<li style=\"text-align:justify\"><span style=\"font-size:11pt\"><span style=\"font-family:Arial,sans-serif\"><span style=\"font-size:12.0pt\">To promote green power. <\/span><\/span><\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"text-align:justify\"><span style=\"font-size:11pt\"><span style=\"font-family:Arial,sans-serif\"><span style=\"font-size:12.0pt\">The draft Bill has covered nearly a dozen areas, such as distribution franchise andsublicence, subsidy, and cost reflective tariff. <\/span><\/span><\/span><\/li>\n<li style=\"text-align:justify\"><span style=\"font-size:11pt\"><span style=\"font-family:Arial,sans-serif\"><span style=\"font-size:12.0pt\">Among the remedies presented by the government through the initiative are:<\/span><\/span><\/span>\n<ul>\n<li style=\"text-align:justify\"><span style=\"font-size:11pt\"><span style=\"font-family:Arial,sans-serif\"><span style=\"font-size:12.0pt\">direct benefit transfer (DBT) of subsidies,<\/span><\/span><\/span><\/li>\n<li style=\"text-align:justify\"><span style=\"font-size:11pt\"><span style=\"font-family:Arial,sans-serif\"><span style=\"font-size:12.0pt\">reduction of cross subsidies, <\/span><\/span><\/span><\/li>\n<li style=\"text-align:justify\"><span style=\"font-size:11pt\"><span style=\"font-family:Arial,sans-serif\"><span style=\"font-size:12.0pt\">role for distribution sublicensees with regulators\u2019 nod, <\/span><\/span><\/span><\/li>\n<li style=\"text-align:justify\"><span style=\"font-size:11pt\"><span style=\"font-family:Arial,sans-serif\"><span style=\"font-size:12.0pt\">the adoption of a national renewable energy policy <\/span><\/span><\/span><\/li>\n<li style=\"text-align:justify\"><span style=\"font-size:11pt\"><span style=\"font-family:Arial,sans-serif\"><span style=\"font-size:12.0pt\">the establishment of the electricity contract enforcement authority.<\/span><\/span><\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<ul>\n<li style=\"text-align:justify\"><span style=\"font-size:11pt\"><span style=\"font-family:Arial,sans-serif\"><strong><span style=\"font-size:12.0pt\">Choice to Consumers: <\/span><\/strong><\/span><\/span>\n<ul>\n<li style=\"text-align:justify\"><span style=\"font-size:11pt\"><span style=\"font-family:Arial,sans-serif\"><span style=\"font-size:12.0pt\">Electricity distribution is delicensed, at least in the letter, giving consumers a choice to choose a distribution company in their area. <\/span><\/span><\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"text-align:justify\"><span style=\"font-size:11pt\"><span style=\"font-family:Arial,sans-serif\"><strong><span style=\"font-size:12.0pt\">Universal Service obligation Fund: <\/span><\/strong><\/span><\/span>\n<ul>\n<li style=\"text-align:justify\"><span style=\"font-size:11pt\"><span style=\"font-family:Arial,sans-serif\"><span style=\"font-size:12.0pt\">There is the provision of a universal service obligation fund, which shall be managed by a government company. <\/span><\/span><\/span><\/li>\n<li style=\"text-align:justify\"><span style=\"font-size:11pt\"><span style=\"font-family:Arial,sans-serif\"><span style=\"font-size:12.0pt\">This fund shall be utilised to meet any deficits in cross-subsidy. In case of supply through pre-paid meters, security deposit will not be required. <\/span><\/span><\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"text-align:justify\"><span style=\"font-size:11pt\"><span style=\"font-family:Arial,sans-serif\"><strong><span style=\"font-size:12.0pt\">Appellate Tribunal for Electricity (APTEL):<\/span><\/strong><\/span><\/span>\n<ul>\n<li style=\"text-align:justify\"><span style=\"font-size:11pt\"><span style=\"font-family:Arial,sans-serif\"><span style=\"font-size:12.0pt\">The APTEL is being strengthened by an increasing number of members. <\/span><\/span><\/span><\/li>\n<li style=\"text-align:justify\"><span style=\"font-size:11pt\"><span style=\"font-family:Arial,sans-serif\"><span style=\"font-size:12.0pt\">The domains from where the chairperson and members of Central Electricity Regulatory Commission (CERC) and State Electricity Regulatory Commissions (SERC) will come have been described. <\/span><\/span><\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"text-align:justify\"><span style=\"font-size:11pt\"><span style=\"font-family:Arial,sans-serif\"><strong><span style=\"font-size:12.0pt\">National climate change goals considered: <\/span><\/strong><\/span><\/span>\n<ul>\n<li style=\"text-align:justify\"><span style=\"font-size:11pt\"><span style=\"font-family:Arial,sans-serif\"><span style=\"font-size:12.0pt\">Keeping in view the national climate change goals, the responsibility of fixing renewable power obligation (RPO) is shifted from state commissions to the central government. <\/span><\/span><\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"text-align:justify\"><span style=\"font-size:11pt\"><span style=\"font-family:Arial,sans-serif\"><strong><span style=\"font-size:12.0pt\">Role of dispatch centres:<\/span><\/strong><\/span><\/span>\n<ul>\n<li style=\"text-align:justify\"><span style=\"font-size:11pt\"><span style=\"font-family:Arial,sans-serif\"><span style=\"font-size:12.0pt\">The role of load dispatch centres is gaining importance as the interconnected power system is getting more complex with the addition of renewable generators. <\/span><\/span><\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"text-align:justify\"><span style=\"font-size:11pt\"><span style=\"font-family:Arial,sans-serif\"><strong><span style=\"font-size:12.0pt\">Dispatch disputes:<\/span><\/strong><\/span><\/span>\n<ul>\n<li style=\"text-align:justify\"><span style=\"font-size:11pt\"><span style=\"font-family:Arial,sans-serif\"><span style=\"font-size:12.0pt\">At the same time, disputes related to the despatch of power are increasing, adjudication of load dispatch centres related disputes have been included in the functions of regulatory commissions. <\/span><\/span><\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"text-align:justify\"><span style=\"font-size:11pt\"><span style=\"font-family:Arial,sans-serif\"><strong><span style=\"font-size:12.0pt\">Strengthened regulatory commissions:<\/span><\/strong><\/span><\/span>\n<ul>\n<li style=\"text-align:justify\"><span style=\"font-size:11pt\"><span style=\"font-family:Arial,sans-serif\"><span style=\"font-size:12.0pt\">The regulatory commissions were earlier called \u2018toothless tigers\u2019 by some. Their orders will now be executable as decree including attachment of property, arrest and detention in prison.<\/span><\/span><\/span><\/li>\n<li style=\"text-align:justify\"><span style=\"font-size:11pt\"><span style=\"font-family:Arial,sans-serif\"><span style=\"font-size:12.0pt\">With Law members in the commission, these powers will be exercised appropriately, resulting in better enforcement.<\/span><\/span><\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"text-align:justify\"><span style=\"font-size:11pt\"><span style=\"font-family:Arial,sans-serif\"><strong><span style=\"font-size:12.0pt\">Penalty:<\/span><\/strong><\/span><\/span>\n<ul>\n<li style=\"text-align:justify\"><span style=\"font-size:11pt\"><span style=\"font-family:Arial,sans-serif\"><span style=\"font-size:12.0pt\">Penalty for contravention of the provisions of the Act has been increased up to Rs 1 crore. Non-fulfilment of RPO will attract stringent penalties as per the proposed amendments.<\/span><\/span><\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p style=\"text-align:justify\"><span style=\"font-size:11pt\"><span style=\"font-family:Arial,sans-serif\"><strong><u><span style=\"font-size:13.0pt\">Reasons for Opposition<\/span><\/u><\/strong><\/span><\/span><\/p>\n<ul>\n<li style=\"text-align:justify\"><span style=\"font-size:11pt\"><span style=\"font-family:Arial,sans-serif\"><strong><span style=\"font-size:12.0pt\">Financial Losses:<\/span><\/strong><span style=\"font-size:12.0pt\"> The States feel that a greater role for private distribution companies and franchises would only lead to cherry picking of remunerative areas by them, leaving it to the State discoms to serve social sector obligations and rural areas that may lead to financial losses. <\/span><\/span><\/span><\/li>\n<li style=\"text-align:justify\"><span style=\"font-size:11pt\"><span style=\"font-family:Arial,sans-serif\"><strong><span style=\"font-size:12.0pt\">Disturbs Federal Balance:<\/span><\/strong><span style=\"font-size:12.0pt\"> The proposed delicensing of distribution has unnerved many States. They argue that the amendment strikes at the root of the federal structure. <\/span><\/span><\/span><\/li>\n<li style=\"text-align:justify\"><span style=\"font-size:11pt\"><span style=\"font-family:Arial,sans-serif\"><strong><span style=\"font-size:12.0pt\">Profiteering:<\/span><\/strong><span style=\"font-size:12.0pt\"> The objective of providing choices to the consumers would end up in profiteering by new service providers through tariff hikes. <\/span><\/span><\/span><\/li>\n<li style=\"text-align:justify\"><span style=\"font-size:11pt\"><span style=\"font-family:Arial,sans-serif\"><strong><span style=\"font-size:12.0pt\">Replacing Farm Subsidies:<\/span><\/strong><span style=\"font-size:12.0pt\"> The draft Bill is also being opposed by many political parties and farmers on the ground that DBT will do away with the heavily subsidised or free power supply to the farm sector. <\/span><\/span><\/span><\/li>\n<li style=\"text-align:justify\"><span style=\"font-size:11pt\"><span style=\"font-family:Arial,sans-serif\"><strong><span style=\"font-size:12.0pt\">Problems with Hydropower:<\/span><\/strong><span style=\"font-size:12.0pt\"> One of the complaints of Tamil Nadu against the draft Bill is that hydro power purchase obligation cannot be fixed separately as hydropower generation is seasonal, monsoon dependent and not in the control of its discom.<\/span><\/span><\/span><\/li>\n<li style=\"text-align:justify\"><span style=\"font-size:11pt\"><span style=\"font-family:Arial,sans-serif\"><strong><span style=\"font-size:12.0pt\">Low cost recovery: <\/span><\/strong><span style=\"font-size:12.0pt\">Discoms are unable to recover their costs, out of which nearly 75-80 per cent are power purchase costs. <\/span><\/span><\/span>\n<ul>\n<li style=\"text-align:justify\"><span style=\"font-size:11pt\"><span style=\"font-family:Arial,sans-serif\"><span style=\"font-size:12.0pt\">There is no regulatory intervention to fix coal costs and railway freight. <\/span><\/span><\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"text-align:justify\"><span style=\"font-size:11pt\"><span style=\"font-family:Arial,sans-serif\"><strong><span style=\"font-size:12.0pt\">High Fixed cost for unutilised power: <\/span><\/strong><span style=\"font-size:12.0pt\">These costs have increased much more than the weighted average increase of wholesale price index and retail price index. <\/span><\/span><\/span>\n<ul>\n<li style=\"text-align:justify\"><span style=\"font-size:11pt\"><span style=\"font-family:Arial,sans-serif\"><span style=\"font-size:12.0pt\">No win-win solution (to power distribution and generation companies) are offered to reduce the fixed cost of unutilised power through the amendment bill. <\/span><\/span><\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"text-align:justify\"><span style=\"font-size:11pt\"><span style=\"font-family:Arial,sans-serif\"><strong><span style=\"font-size:12.0pt\">Huge AT&#038;C losses: <\/span><\/strong><span style=\"font-size:12.0pt\">According to a report released by the distribution utility forum based on Uday dashboard in 2020, the Aggregate Technical &#038; Commercial (AT&#038;C) losses of 12 states were more than 25 per cent and of six states between 15 and 25 percent.<\/span><\/span><\/span><\/li>\n<\/ul>\n<p style=\"text-align:justify\">\u00a0<\/p>\n<p style=\"text-align:center\"><span style=\"font-size:11pt\"><span style=\"font-family:Arial,sans-serif\"><span style=\"font-size:12.0pt\"><img decoding=\"async\" id=\"image2.png\" src=\"https:\/\/cfstatic.nextias.com\/cdn-cgi\/image\/format=auto\/file_library\/mix_content\/686647066679112800_image.png\" style=\"height:504px; width:500px\" \/> <\/span><\/span><\/span><\/p>\n<p style=\"text-align:center\"><span style=\"font-size:11pt\"><span style=\"font-family:Arial,sans-serif\"><strong><span style=\"font-size:12.0pt\">Dues of discoms to generation companies (in Rs crore<\/span><\/strong><span style=\"font-size:12.0pt\"> (Image Courtesy: <\/span><a href=\"https:\/\/www.downtoearth.org.in\/blog\/energy\/electricity-amendment-bill-2021-how-it-can-play-out-78132\" target=\"_blank\" rel=\"noopener\"><span style=\"font-size:12.0pt\"><span style=\"color:#1155cc\">DTE<\/span><\/span><\/a><span style=\"font-size:12.0pt\"> )<\/span><\/span><\/span><\/p>\n<p style=\"text-align:justify\">\u00a0<\/p>\n<p style=\"text-align:justify\"><span style=\"font-size:11pt\"><span style=\"font-family:Arial,sans-serif\"><strong><u><span style=\"font-size:13.0pt\">Way Ahead<\/span><\/u><\/strong><\/span><\/span><\/p>\n<ul>\n<li style=\"text-align:justify\"><span style=\"font-size:11pt\"><span style=\"font-family:Arial,sans-serif\"><span style=\"font-size:12.0pt\">Provisions for power market development, market-based economic despatch and gross bidding in the amendment bill could have paved the way for next-generation reforms. <\/span><\/span><\/span><\/li>\n<li style=\"text-align:justify\"><span style=\"font-size:11pt\"><span style=\"font-family:Arial,sans-serif\"><span style=\"font-size:12.0pt\">Provisions to avoid an increase in discom viability gap and at the same time to prevent an abnormal increase in tariff may have been included in the amendment bill, at least as a lighthouse to guide navigation for reforms. <\/span><\/span><\/span><\/li>\n<li style=\"text-align:justify\"><span style=\"font-size:11pt\"><span style=\"font-family:Arial,sans-serif\"><span style=\"font-size:12.0pt\">Some of the issues that may be considered for holistic power sector reforms:<\/span><\/span><\/span>\n<ul>\n<li style=\"text-align:justify\"><span style=\"font-size:11pt\"><span style=\"font-family:Arial,sans-serif\"><span style=\"font-size:12.0pt\">The provision of coal and railway freight regulators<\/span><\/span><\/span><\/li>\n<li style=\"text-align:justify\"><span style=\"font-size:11pt\"><span style=\"font-family:Arial,sans-serif\"><span style=\"font-size:12.0pt\">Linkage of AT&#038;C losses as key performance indicator for release of central funds to states by any ministry<\/span><\/span><\/span><\/li>\n<li style=\"text-align:justify\"><span style=\"font-size:11pt\"><span style=\"font-family:Arial,sans-serif\"><span style=\"font-size:12.0pt\">Provision of a risk management committee and corporate governance within discoms, irrespective of being listed company<\/span><\/span><\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"text-align:justify\"><span style=\"font-size:11pt\"><span style=\"font-family:Arial,sans-serif\"><span style=\"font-size:12.0pt\">The commissions should be built as strong institutions and their autonomy should be respected and maintained. <\/span><\/span><\/span><\/li>\n<li style=\"text-align:justify\"><span style=\"font-size:11pt\"><span style=\"font-family:Arial,sans-serif\"><span style=\"font-size:12.0pt\">After providing a robust framework for fair competition, the government should minimise its frequent interventions in the sector. <\/span><\/span><\/span><\/li>\n<li style=\"text-align:justify\"><span style=\"font-size:11pt\"><span style=\"font-family:Arial,sans-serif\"><span style=\"font-size:12.0pt\">Electricity regulatory commissions hold the key to take the power sector forward. <\/span><\/span><\/span><\/li>\n<\/ul>\n<table cellspacing=\"0\" class=\"Table\" style=\"border-collapse:collapse; border:none; width:624px\">\n<tbody>\n<tr>\n<td style=\"background-color:#fff2cc; border-bottom:1px solid black; border-left:1px solid black; border-right:1px solid black; border-top:1px solid black; vertical-align:top; width:624px\">\n<p style=\"text-align:justify\"><span style=\"font-size:11pt\"><span style=\"font-family:Arial,sans-serif\"><strong><u><span style=\"font-size:12.0pt\">Draft Electricity (Amendment) Bill 2020<\/span><\/u><\/strong><\/span><\/span><\/p>\n<ul>\n<li style=\"text-align:justify\"><span style=\"font-size:11pt\"><span style=\"font-family:Arial,sans-serif\"><span style=\"font-size:12.0pt\">The Bill provides for the constitution of the Electricity Contract Enforcement Authority (ECEA).\u00a0 The ECEA will have sole authority to adjudicate upon specified contract-related disputes in the electricity sector.<\/span><\/span><\/span><\/li>\n<li style=\"text-align:justify\"><span style=\"font-size:11pt\"><span style=\"font-family:Arial,sans-serif\"><span style=\"font-size:12.0pt\">A common selection committee will be constituted to select the chairperson and members of the Appellate Tribunal (APTEL), the central and state regulatory commissions (CERC, SERCs), and ECEA.<\/span><\/span><\/span><\/li>\n<li style=\"text-align:justify\"><span style=\"font-size:11pt\"><span style=\"font-family:Arial,sans-serif\"><span style=\"font-size:12.0pt\">Currently, SERCs are required to specify regulations to progressively reduce cross-subsidy.\u00a0 The Bill requires them to adhere to the National Electricity Tariff Policy while determining the cross-subsidy.<\/span><\/span><\/span><\/li>\n<li style=\"text-align:justify\"><span style=\"font-size:11pt\"><span style=\"font-family:Arial,sans-serif\"><span style=\"font-size:12.0pt\">Government subsidy will not be accounted for while determining the tariff.\u00a0 Such subsidies will be provided directly to consumers.<\/span><\/span><\/span><\/li>\n<li style=\"text-align:justify\"><span style=\"font-size:11pt\"><span style=\"font-family:Arial,sans-serif\"><span style=\"font-size:12.0pt\">The Bill adds that a franchisee will be authorised with the information given to the SERC.\u00a0 The Bill provides for a new entity called Distribution Sub-licensee.\u00a0 A distribution licensee can authorise a sub-licensee to distribute electricity on its behalf with the prior permission of the SERC.<\/span><\/span><\/span><\/li>\n<li style=\"text-align:justify\"><span style=\"font-size:11pt\"><span style=\"font-family:Arial,sans-serif\"><span style=\"font-size:12.0pt\">State and regional load dispatch centres will not schedule or despatch electricity if the distribution licensee has not provided adequate payment security, as agreed in the contract.<\/span><\/span><\/span><\/li>\n<li style=\"text-align:justify\"><span style=\"font-size:11pt\"><span style=\"font-family:Arial,sans-serif\"><span style=\"font-size:12.0pt\">The Bill empowers the central government to notify a National Renewable Energy Policy in consultation with state governments and prescribe minimum renewable and hydro purchase obligation.<\/span><\/span><\/span><\/li>\n<\/ul>\n<p style=\"text-align:justify\"><span style=\"font-size:11pt\"><span style=\"font-family:Arial,sans-serif\"><strong><u><span style=\"font-size:12.0pt\">KUSUM Scheme<\/span><\/u><\/strong><\/span><\/span><\/p>\n<ul>\n<li style=\"text-align:justify\"><span style=\"font-size:11pt\"><span style=\"font-family:Arial,sans-serif\"><span style=\"font-size:12.0pt\">The aim is to establish an operationally efficient and financially sustainable power sector which is equipped with modern technologies like smart grids and to meet this requirement, the government has launched the revamped distribution sector scheme.<\/span><\/span><\/span><\/li>\n<li style=\"text-align:justify\"><span style=\"font-size:11pt\"><span style=\"font-family:Arial,sans-serif\"><span style=\"font-size:12.0pt\">Under the KUSUM scheme, agriculture feeders are being solarised. Thirty per cent of the cost of solarisation is met from the KUSUM, and seventy per cent is loan from NABARD\/PFC\/REC.<\/span><\/span><\/span><\/li>\n<li style=\"text-align:justify\"><span style=\"font-size:11pt\"><span style=\"font-family:Arial,sans-serif\"><span style=\"font-size:12.0pt\">The target of the scheme is to bring down the Aggregate Technical and Commercial Losses (AT&#038;C Losses) to 12-15 per cent at the all India level and bring down the gap between Average Cost of Supply (ACS) and Average Revenue Realised (ARR) to zero by 2024-25<\/span><\/span><\/span><\/li>\n<li style=\"text-align:justify\"><span style=\"font-size:11pt\"><span style=\"font-family:Arial,sans-serif\"><span style=\"font-size:12.0pt\">Meanwhile, power distribution companies (DISCOMs) that are making losses will not be able to access the funds under this Scheme unless they draw up a plan to reduce the losses; list out the steps they would take to reduce such losses and the calendar; thereof, get their State\u2019s approval to it; and file it with the Centre. The fund flow from the scheme will be contingent on their adhering to the loss reduction trajectories.<\/span><\/span><\/span><\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p style=\"text-align:justify\">\u00a0<\/p>\n<p style=\"text-align:justify\"><span style=\"font-size:11pt\"><span style=\"font-family:Arial,sans-serif\"><strong><span style=\"font-size:12.0pt\">Source<\/span><\/strong><span style=\"font-size:12.0pt\">: TH <\/span><\/span><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In News Recently, the draft Electricity (Amendment) Bill, 2021 has been sent to the Cabinet Secretary for further consideration. Need for Amendments Inefficient Discoms: For years, electricity distribution has remained the sorepoint in the country\u2019s power network. Although States unbundled the vertically integrated State Electricity Boards into generation companies and distribution companies (discoms) to promote [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":12625,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21],"tags":[26,80],"class_list":["post-12624","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-current-affairs","tag-gs-3","tag-infrastructure"],"acf":[],"jetpack_featured_media_url":"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2023\/07\/3089044current-affairs.jpg","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/12624","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=12624"}],"version-history":[{"count":0,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/12624\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media\/12625"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=12624"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=12624"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=12624"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}