1. 8th Monitoring Committee Meeting 11th August 2017, New Delhi
UDAY
8th Monitoring Committee Meeting
11th August 2017, New Delhi

2. OUTLINE OF PRESENTATION
Confirmation of Minutes of the 7th Monitoring Committee meeting
States Participation/Debt Restructuring
Outcome of UDAY (FY17)
Key Action Points of State Visits
Status of Tariff Petition (State-wise)
States compliance on Monitoring Framework
Loss Takeover by the States for FY18
Tax implications of Grants to States
Challenges And Issues

3. MINUTES OF THE 7TH MONITORING COMMITTEE MEETING
CONFIRMATION OF
MINUTES OF THE 7TH MONITORING COMMITTEE MEETING
HELD ON 24th April 2017

4. UDAY: Participating states / Union Territories
Agreement Signed
Agreement not Signed
26 states and 1 UT have joined UDAY.
Delhi and Odisha have private DISCOMs.
Remaining states: West Bengal and Nagaland

5. Addressing Debt under UDAY
Rs lakh Cr.
Debt as on (all State owned Discoms)
Rs lakh Cr.
97% of total Discoms’ debt
Debt of States / UTs participating in UDAY as on
Rs lakh Cr.
2.09
0.60
70% of total debt of UDAY states
Debt to be taken over by State Govt or to be issued as DISCOM Bonds
Rs lakh Cr.
2.09
0.23
87% of debt to be addressed
0.24
Bonds issued till date
State
DISCOM
Source: PFC Reports, UDAY MoU and States/DISCOMs

6. Improvement in Financial Parameters
UDAY Outcome(1/3):
Improvement in Financial Parameters
(FY16-FY17)
Reduction in Power Purchase Cost
Cost reduction by NTPC (FY 14-17)
Efficiency gains
39.5 Paise/Unit
Clean energy Cess
-24 Paise/Unit
Increase in Coal price
-7.0 Paise/Unit
Increase in Rly Freight
-2.1 Paise/Unit
Net gains
6.4 Paise/Unit
~Rs 1,800 Cr.
(FY16-FY17)
Decrease in AT&C Losses
~Rs 3,800 Cr.
Savings till March, 2017
Reduction in Interest Cost
~Rs 15,086 Cr.
Trend
(FY16-FY17)
Reduction in Book loss
~Rs 11,045 Cr.
As reported by States
Source: Data provided by DISCOMs on UDAY portal

7. Data submitted by States Data submitted by States
UDAY Outcome(2/3):
Decrease in outstanding CPSU dues (> 60 days)
-46%
Estimated CPSU dues
Rs. Cr
Estimated
CPSU dues
Estimated
CPSU dues
Estimated
CPSU dues
Data submitted by States
Data submitted by States
As per CEA
As per CEA

8. UDAY Outcome(3/3): AT&C losses reduced in 14 states; ACS-ARR Gap narrowed in 15 states
Decrease in AT&C Loss 9% 8% 7% 6% 5% 4% 3% 2% 1%
-1%
-2%
-3%
-4%
0.20
0.40
0.60
0.80
1.00
1.20
-0.30
-0.25
-0.20
-0.15
-0.10
-0.05
Kerala
Karnataka
Jharkhand
Assam
Punjab
Bihar
Uttarakhand
Puducherry
Gujarat
Maharashtra
Madhya Pradesh
Haryana
Telangana
Andhra Pradesh
Uttar Pradesh
Tripura
Tamil Nadu HP
Chhattisgarh
J&K
Goa
Rajasthan
Manipur
Increase in AT&C Loss
Decrease in ACS-ARR Gap
Increase in ACS-ARR Gap
States to be watched
Well Performing States
Underperforming States

9. Snapshot of Key Action Points of State Visits
Action Required
States/Action Points
Assam
Uttar Pradesh
Rajasthan
Haryana
Jammu and Kashmir
Mizoram
Jharkhand
Gujarat
Bihar
Puducherry
File cost reflective tariff petitions
Improve Billing and Collection Efficiency
Prioritizing high loss divisions /appoint feeder managers
Power Purchase Cost Optimization
Timely release of subsidy disbursement
Take over o f losses is generic and thus should be removed from the PPT

10. Status of issuance of Tariff Order(1/2)
Tariff Order Issued
  Tariff Order Not Issued
Name of State
MYT/ARR Petition FY
(Filed/Not Filed)
Tariff Order
FY (Issued/Not Issued)
% Average tariff Hike
MoU Tariff Hike Target for FY17-18
Bihar*
Filed 
55%
15.00%
Uttarakhand
5.72%
4.27%
Madhya Pradesh
9.42%
5.00%
Karnataka 8%
3%-4%
Gujarat 0%
0.50%
Andhra Pradesh
3.60%
Chhattisgarh
1.46%
6.00%
Manipur 5%
Rs.5.13/KWH
Assam 6%
6.50%
Meghalaya
5%( Approx.)
8.68%
Mizoram
3.50%
Jharkhand
Filed (MYT )
12%
9.60%
Maharashtra
Filed (MYT)
 2%
9.01%
*Bihar has followed a zero subsidy model of tariff petition. The effective tariff-hike, post subsidy, is substantially lesser(~20%)
Source :Statement is prepared based on data shared by State /Available in public domain/Collected through telephone or through PFC.

11. Status of issuance of Tariff Order(2/2)
Tariff Order Issued
 Tariff Order Not Issued
Name of State
MYT/ARR Petition FY
(Filed/Not Filed)
Tariff Order
FY (Issued/Not Issued)
% Average tariff Hike
MoU Tariff Hike Target for FY17-18
Kerala
Not Filed * 0%
Himachal Pradesh
Filed 
3.00%
Telangana
8.00%
Sikkim 2%
15.00%
Arunachal Pradesh  
No tariff Hike is proposed.
0.00%
Rajasthan 
9.6% (FY17 order) 
Haryana
4% for > 150 units 
Projection are not given
Punjab - 
9.00%
Puducherry
0% 
Jammu & Kashmir
Filed (MYT)
13.5% (FY 17) 
17.00%
Goa
5.00%
Tamil Nadu
Tripura
6% (FY15)
4.50%
Uttar Pradesh
  3.2% (FY17)
6.95%
Himachala and teleangana, pudhuchery, goa and tamil nadu – how about their financials ? Have they been able to meet the targets of ACS/ARR gaps and P&L this year ? Plese indicate the same in return .
Data for Punjab and Rajasthan, J&K, Tripura, UP is not available - % average tarif hike
*Regulator for Kerala has issued the tariff order suo-motu
Source :Statement is prepared based on data shared by State /Available in public domain/Collected through telephone or through PFC.

12. States compliance on Monitoring Framework
Current Status of appointment of Nodal Officer, constitution of State/DISCOM level committees and submission of Action Plans.
S .No.
State
Action Plan
Nodal Officer
State Level Monitoring Committee
Remarks 1
Goa No
Yes 2
Karnataka
Only MESCOM
Only MESCOM from Karnataka and APEP of Andhra have submitted Action Plan. 3
Andhra Pradesh
Only APEPDCL 4
Manipur 5
Puducherry 6
Madhya Pradesh 7
Maharashtra 8
Himachal Pradesh 9
Telangana
 No 10
Assam 11
Tamil Nadu
 Joined in Jan'17 12
Sikkim
Joined in Feb'17. Data not submitted 13
Meghalaya
 Yes
Joined in Mar'17 14
Kerala 15
Tripura 16
Arunachal Pradesh
Joined in Mar'17, Yet to start submitting Data into Portal 17
Mizoram
Rest 10 States (Rajasthan, UP , Chhattisgarh, Jharkhand, Punjab, Bihar, J&K, Haryana, Gujarat & Uttarakhand ) have completed the requisite process

13. FY17 Losses to be taken over in FY18 by State Governments
MOF and regulators have made it clear that DISCOMS should quickly finalize their accounts and indicate the losses, as further borrowing permissions would be contingent on the same.
State
Losses (Unaudited)
Losses to be Taken over
Remarks
FY17 (Rs. Cr)
In FY18 (Rs. Cr)
Assam
(229)
(11)
Loss takeover will start in FY 19
Andhra Pradesh
(2,780)
(139)
As per the MoU,5% of the FY17 losses to be taken over in FY18
Bihar
(1,641)
(82)
Chhattisgarh
451 23
Haryana
(387)
(19)
Himachal Pradesh
333
Jammu & Kashmir
(3,368)
(168)
Not Applicable being Govt. Department
Jharkhand
Data N/A 
Data N/A
Madhya Pradesh
(4,813)
(241)
Maharashtra
(2,568)
(128)
Meghalaya
(409)
(20)
Punjab
(2,386)
(119)
Govt. of Punjab has already committed to 5% takeover of losses
Rajasthan
(5,208)
(260)
Tamil Nadu
(3,783)
(189)
Telangana
(2,116)
(106)
Uttar Pradesh
(6,619)
(331)

14. Tax implications of Grants to DISCOMs
As per information available, States have the Income Tax/ Minimum Alternate Tax (MAT) implication on treating the Grant as Revenue Grant:
Tax issue once raised formally by Madhya Pradesh
MoP has sought additional details on the same; Not yet available
Issue raised on sidelines of other meetings by other States
States/DISCOMs may elaborate the extent of the implications accompanied by relevant financial data for appropriate action.

15. Debt Conversion and Outstanding Loan Trend
Rs. In Crore)
Sl No.
State
State Bonds Issued
Taken over Till 30/06/2017 (Grant/Equity)
Conversion Pending (FY17)
Debt as on 30/09/2015
Closing Balance 30/06/2017
Increase/Decrease in Debt Amount
CPSU Dues ( )^
CPSU Dues ( )^
Increase/Decrease in CPSU Dues 1
RAJASTHAN
62,422
17,700
83,230
73,572
-9658 
1,019
415
-604 2
Uttar Pradesh
39,134
7,400 
22,531
53,935
65,470
11,535 
2,284 
1,638
-646 3
TAMIL NADU
22,815
4563
48,640
54,263
5,624
894
1,560
666 4
MADHYA PRADESH
7,360
7,568
34,739
36,648
1,909 15 5
HARYANA
25,087
10,035
33,450
25,082
 -8368
142 19
 -123 6
Maharashtra
4,960
992
22,097
26,678
4,582
 -4 7
Punjab
15,628
20,838
27,347
6,510
284
123
 -161 8
ANDHRA PRADESH
8,256
8256
14,721
21,828
7,107
179
476
297 9
TELANGANA
8,923
8923
11,951
16,629
4,677
128
229
102 10
JHARKHAND
6,136
6136
7,471
1,335
9,123
1,993
 -7130 11
HIMACHAL PRADESH
2,891
3,854
4,018
164
698
210
 -488 12
BIHAR
2,332
3,109
1,986
 -1123 43
308
265 13
CHHATTISGARH
870
435
1,740
2,319
578 14
ASSAM
1133
1,510
1,647
137
548
331
-217 
MEGHALAYA
125
167
152
 -15
471
180
-291  16
KERALA
5,801
7,520
1,720
175 85
-90  17
Gujarat
1,395
414
 -981 18
UTTARAKHAND
672
848
176 83
MANIPUR 53 56 20
 -63
GOA 48 35
 -13 21
TRIPURA
169 94 29
 -65
Total
2,06,938#
46,897
52,102
3,48,085
3,74,153
16180
7735
1. In case of UP, Rajasthan , TN & Chhattisgarh, loan amounting to ~ Rs. 1,00,000 cr shall be progressively taken by the State and servicing presently being done by States only # Excluding J&K.
^Source : CEA Report for Outstanding Dues, Debt Info. Provided by the DISCOM

16. Challenges and Issues
1. Delay in payment of dues by Government Departments*
Few state DISCOMs with high Govt. Department dues at the end of March 2017
State
Dues at the end of March 2017
(Rs. Cr.)
Uttar Pradesh
8,853
Telangana
3,561
Maharashtra
3,364
Andhra Pradesh
2,828
Kerala
2,609
Jammu & Kashmir
1,868
Karnataka
1,880
Bihar
610
Source: Data provided by DISCOMs on UDAY portal

17. Challenges and Issues
2. Persistence of high theft/low billing & collection efficiencies in various areas
Few states which have reported lower than 85% Billing efficiency in FY17
UDAY Average – 83%
Q1FY17
Few states which have reported lower than 90% collection efficiency in FY17
Source: Data provided by DISCOMs on UDAY portal

18. % Un-Metered + Defective Meters (FY17)
Challenges and Issues
3. Unsatisfactory Metering at Consumer, DT and Feeder levels
A) Consumer Metering is not satisfactory in the case of following states :
B) DT Metering( Rural and Urban): Following states are lagging on national level in terms of achievement of DT Metering:
State
% Un-Metered + Defective Meters (FY17)
Tripura
55%
Jammu and Kashmir
44%
Uttar Pradesh
40%
Arunachal Pradesh
24%
Sikkim
21%
Meghalaya
19%
Jharkhand
12%
Tamil Nadu
State
% Achievement till FY17
Jammu & Kashmir 6%
Punjab
18%
Uttar Pradesh
19%
Bihar
20%
Rajasthan
Tamil Nadu
Haryana
23%
Maharashtra
25%
Chhattisgarh
26%
Jharkhand
27%
Telangana
31%
Madhya Pradesh
35%
Tripura
43%
Kerala
46%
Source: Power for All documents
Under DDUGJY & IPDS, 2.6 Cr. meters worth Rs. 4,600 Cr. have been sanctioned
Source: CEA, DISCOMs
States are encouraged to replace conventional meters by Smart Meters

19. Challenges and Issues
Unsatisfactory Metering at Consumer, DT and Feeder level (Contd.)
C) Following States have lowest achievement figures for Feeder Metering (Rural and Urban)
State
Feeder Metering % Achievement till (FY17)
Assam
26%
Meghalaya
39%
Jharkhand
42%
Chhattisgarh
68%
Bihar
75%
D) Online feeder monitoring*
State
DISCOM
Total Feeders
Total Feeders on National Power Portal(NPP)
% Feeders on NPP
Puducherry
Electricity Department 68 0%
Tamil Nadu
TANGEDCO
2,462
1,104
45%
Jammu & Kashmir
J&K PDD
653
336
51%
Arunachal Pradesh
Department of Power
129 90
70%
Mizoram
Department of Power and Electricity
124 89
72%
What is the figure D)
Is it the Rural feeder monitoring part or also includes Urban ? The matter below talks of different states than what is given in the table. Please clarify /correct
Out of the total approximately 1,55,000 Feeders across India, 55,000 Urban and Rural Feeders are already online. Also, Nagaland, Tamil Nadu, Meghalaya and Goa have very low percentage of feeder data on National Power Portal.
*Source: IPDS

20. Challenges and Issues 4. High power purchase cost in specific regions
States with high power purchase cost for FY17
State
Power Purchase Cost (INR/kWh)
Haryana
5.01
Jharkhand
4.99
Karnataka
4.78
Assam
4.65
Uttar Pradesh
4.63
Telangana
4.62
Madhya Pradesh
4.40
Andhra Pradesh
4.32
Rajasthan
4.27
UDAY states’ Avg
4.16
Measures to optimize power procurement costs 1
Coal swapping 2
Backing-down of inefficient power plants 3
NTPC handholding in state-owned power plants* 4
Merit Order Dispatch
Source: Data provided by DISCOMs on UDAY portal
*NTPC is handholding 12 states (Gujarat, MP, Maharashtra, Tamil Nadu, Telangana, Andhra Pradesh, Haryana, Punjab, UP, Rajasthan, Orissa and Bihar) covering 17 power plants

21. Challenges and Issues 5. Pending Bonds to be issued by the Discoms
S. No.
State
Net Discom Liabilities (to be restructured/ Bond to be issued) as on *
Total Bonds issued by State till date
Total Bonds issued by Discom till date
Total bond issued under UDAY till date
Remaining State Bonds to be issued after adjustment of FRP 12 in F.Y
Remaining Bonds to be issued by Discoms after adjustment of R-APDRP in F.Y
Total Bonds yet to be issued 1 2 3 4 5 6 7 8 9
RAJASTHAN
76,120
59,722
12,368
72,090
4,030
UTTAR PRADESH
50125
39,133
10,377
49,510
616
CHHATISGARH
870
JHARKHAND
6136
6,136
PUNJAB
20262
15,629
4,633
BIHAR
3109
2,332
777
3,109
JAMMU & KASHMIR
3538
3,538
HARYANA
34518
25,951
8,566
Andhra Pradesh
14,721
8,256
6,465 10
Madhya Pradesh
7360
7,360 11
Maharashtra
6613
4960
4,960
1,653 12
Himachal Pradesh
3854
2891
2,891
963 13
Telangana
11244
8923
8,923
2,321 14
Assam
State Govt. loan, Bonds not to be issued - 15
Tamil Nadu
30420
22815
22,815
7,605 16
Meghalaya
167
125 42
TOTAL
269,057
208,641
23,522
232,500
36,894
* DISCOM Liabilities are net of R-APDRP, FRP, State Govt. Loans etc.

22. THANKS

23. Key Action Points of State Visits:
Detailed Plan(1/3)
Puducherry (13th May 2017)
PED was encouraged to use Urjamitra app for sending outage or other messages to the consumers. Cost of usage for the first three years to be borne by MOP.
PED to upgrade the billing software under IPDS scheme
The state department to explore areas to reduce the cost of power purchase through day ahead planning, exchange procurement with support of third party (consultants).
Haryana (19th May 2017)
Increased vigilance, name and shame measures to curb theft to be taken up in a serious manner
DISCOMs officials to analyze consumer sales mix, find out reasons for low realization from industrial and commercial consumer segment and come up with remedial measures.
The state to come up with a plan for prioritizing high loss feeders (such as Kaithal, Pundri, Samalkha, Gohana, Rohtak, Beri, and Jhajjar) and divisions which were identified.
Rajasthan (6th June 2017)
The respective DISCOMs have submitted DPRs to PFC for approval in a bid to achieve proper IT infrastructure. The state to follow up on the issue.
DISCOMs to limit procurement of power from high cost state thermal plants/ IPPs (Suratgarh, KTPS). The state to look into power exchange as an alternative to fulfill short term requirement.

24. Key Action Points of State Visits:
Detailed Plan(2/3)
Uttar Pradesh (6th June 2017)
Data submitted by Uttar Pradesh DISCOMs does not always withstand analytical scrutiny and requires frequent changes. The State needs to identify the reasons for inconsistencies in AT&C, ACS-ARR GAP and Profit & Loss figures and mitigate the issue.
The state to limit procurement from high variable cost state thermal plants (Parichha, Harduaganj) and central/private plants like Dadri, Jhajjar etc. or through fulfilling short term requirement from power exchange at a cheaper rate.
The work of installation of approximately one lakh smart meters at Varanasi was under progress at the time of visit The present status to be shared by the state.
Officials of UPPCL to study Revenue Sharing/ESCO model of smart meters and prepare detailed action plan regarding the same.
Jammu and Kashmir (16th June 2017)
Structural changes in JKPDD to be undertaken progressively. As discussed, operationalization of TRADECO was to be ensured by 16th July,2017 and Transco by 16th September,2017 tentatively. The state to follow up on this.
The state to expedite creation of a dedicated Power procurement cell to optimize power purchase cost.
Detailed action plan to be given by the state department for implementation of good HR practices
Energy Audit agency to be appointed by the state (if not assigned till now).
The state to provide status of initiation of alternative payment avenues like web portals, mobile wallets, tie up with J&K Bank.
Mizoram (21st June 2017)
UDAY achievement data to be uploaded on the portal in a timely and regular manner in order to take corrective and preventive actions.
The state envisages future planning with a goal to electrify all households by 2019.Also the state has targeted to add 38.5 MW in and 27 MW in In this regard, State needs handholding from central agencies.

25. Key Action Points of State Visits:
Detailed Plan(3/3)
Jharkhand (19th June 2017)
The state to follow up target achievement of Distribution Transformer (DT) metering. Balance 21,172 unmetered DTs are targeted to be completed by December 2017.
To enhance collection efficiency, cash-back scheme (1% of energy bill or Rs.50, which ever is lower) to be introduced for all LT consumers and consumers to be facilitated with multiple collection avenues such as Mobile App (ezy-bzly), online payment, e- wallet (through UM), ~4,500 Pragya Kendras, ~440 post offices, ~190 ATP machines etc.
DISCOM has floated a proposal for installation of smart meters for the consumers above 10kW load and upto 85kW load on BOOT model has been initiated and targeted by March 2018.The state to follow up on this.
DISCOM intends to lay nearly 5,735 km of LT AB cables in theft prone areas and has planned to implement ERP (SAP) with four modules by April 2018
Assam (23rd June 2017)
State Government needs to expedite the process of conversion of DISCOM liabilities into grant/equity under consideration as per UDAY MoU
DISCOM may focus on theft preventing measures as domestic consumption accounts for 45% of total consumption despite 100% billing
APDCL to increase purchase from exchange against the present procurement of 6-7% (~400 MUs) from power exchange at an average rate of Rs per kWh.
Bihar (21st June 2017) All the action points are covered in the snapshot
Gujarat (9th June 2017) There are no action points for the state as of now

26. Trends in Power Purchase Cost, AT&C losses,
Interest Cost and ACS-ARR Gap
Parameters
FY14
FY15
FY16
FY17
Power Purchase Cost (INR/kWh)
3.77
3.89
4.18
4.16
AT&C losses (%)
23%
25%
21%
20%
Interest Cost (INR/kWh)
0.43
0.42
0.46
0.34
ACS-ARR Gap (INR/kWh)
0.76
0.60
Source: PFC, UDAY Portal
Back