UDAY is a path breaking reform for realizing the Hon’ble Prime Minister’s vision of affordable and accessible 24x7 Power for All. It is a decisive step furthering the landmark strides made in the Power sector. The scheme intends to address the distribution segment which interacts with the ultimate consumers. The distribution segment is presently fraught with various ailments such high AT&C losses, inadequate metering, inadequate feeder segregation, etc.
UDAY assures the rise of vibrant and efficient DISCOMs through a permanent resolution of past as well as potential future issues of the sector. It empowers DISCOMs with the opportunity to break even in the next 2-3 years. This is through four initiatives:
(i) Improving operational efficiency of DISCOMs;
(ii) Reduction of cost of power;
(iii) Reduction in interest cost of DISCOMs;
(iv) Enforcing financial discipline on DISCOMs through alignment with State finances.