Key Messages

Ujwal DISCOM Assurance Yojana (UDAY)—a flagship scheme of the Government of India that ran from November 2015 to March 2019—was aimed at reducing the aggregate technical and commercial (AT&C) losses of state-owned distribution companies (DISCOMs) by 6%, from 21% in FY15 to 15% in FY19. However, only 50% of the target (18.2%) was achieved by the end of FY19, and there is still a long way to go to achieve the target.

Center for Study of Science, Technology and Policy (CSTEP) undertook a study to analyse the loss calculation methodology, identify the causes for the losses, and estimate the proportion of technical and commercial losses in the recorded AT&C losses. For this purpose, we selected two DISCOMs— Chamundeshwari Electricity Supply Corporation Limited (CESC) and Bangalore Electricity Supply Company Limited (BESCOM)—in Karnataka and focused on 20 feeders from the two DISCOMs.