Mizoram has signed a Memorandum of Understanding (MoU) with the central government to improve the power distribution in the state. The MoU was signed under the scheme Ujwal DISCOM Assurance Yojana (UDAY), making it the 27th state to join the UDAY scheme which is meant for revival of debt-stressed discoms. Mizoram is expected to earn Rs 198 crores by opting to participate in UDAY, by way of cheaper funds, reduction in Aggregate Technical and Commercial (AT&C) losses and transmission losses, interventions in energy efficiency, etc during the period of turnaround.
The reduction in AT&C losses and transmission losses to 15% and 2.50% respectively is likely to bring additional revenue of around Rs 166 crores 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.
The central government will provide incentives to the state government for improving power infrastructure in the state and for further lowering the cost of power.
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.
The scheme would also allow speedy availability of cheaper power to 22,007 households in the State that are still without electricity.