What erstwhile was ignored, has now gained pinnacle importance by Government as the future of power sector at large depends upon better financial health and consistent operations of DISCOMS. To ensure this objective Government did attempted FRPs for struggling Discoms in 2013 which tanked due to lack of timely implementation, forcing yet another scheme to turnaround the fate of state owned distribution utilities which has earned the nomenclature as UDAY (Ujwal DISCOM Assurance Yojana). The scheme is touted as the next paladin to bail out the struggling Discoms, potentially could see them turn green in a time horizon of 3-4 years from 2015/16.

1. Financial & Operational Opportunity
Track for Discoms in India Under
UDAY
March 2016
Opportunity Track
Market Report Series- EREP

2. “Power Distribution” the weakest link of Indian Power
value chain has consistently threatened the procurement
dynamics.
Research Base
Approximate savings per annum in the
cost of interest
$ 8 Billion
The long standing “Achilles” heel of Indian power sector
has arguably been the power distribution facet courtesy
the poor operational efficiencies and piling debt mount
on respective Discoms. The weakest link of the power
value chain has consistently pressurized India’s power
industry and has threatened procurement dynamics
putting a serious question mark over existing and
upcoming power generation portfolio of the country.
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Financial & Operational Opportunity Track for Discoms
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Copyright© 2016 ENINCON, All rights reserved
0
5
10
15
20
Savings(InUSDBillion)
Overall Savings in Cost
14.6
UDAY touted as the next paladin to bail out the
struggling Discoms, potentially could see them turn
green in a time horizon of 3-4 years from 2015/16.
Though optional for the states the objectives of the
scheme are pretty direct and convincing provided they
find timely application as well, which are depicted as
below:
To ensure this objective Government did attempted
FRPs for struggling Discoms in 2013 which tanked due
to lack of timely implementation, forcing yet another
scheme to turnaround the fate of state owned
distribution utilities which has earned the nomenclature
as UDAY (Ujwal DISCOM Assurance Yojana).
Exhibit 01: Principal Objectives of UDAY Scheme of GoI for
State Owned Discoms & Key Numbers
ILLUSTRATIVE
Reduction in Cost of Interest of Discoms through debt takeover by States
Dramatically Improving Operational Efficiency of Discoms
Reducing the Cost of Power Procurement
Enforcing Financial Discipline on Discoms
1
2
3
4
What erstwhile was ignored, has now gained pinnacle importance by
Government as the future of power sector at large depends upon
better financial health and consistent operations of DISCOMS.
INR.880
Billion
INR. 460
Billion
G A I N INR.160
Billion
INR.160
Billion
Relief per annum
for Discoms
Savings in
Cost of
Interest
Decrease
in Cost of
Supply
Savings through
Improved Coal
Supplies
Source: enincon perspective

3. Fifteen
States in India have opted for
UDAY scheme so far
“Ujwal DISCOM Assurance Yojana” is regarded as one stop medicine to all woes of the
power distribution companies in India
Research Case
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Exhibit 02: UDAY Scheme for Discoms – An Infographic View (For Volunteer Discoms)
INFOGRAPHIC
0%
20%
40%
60%
Andhra…
Bihar
Jharkhand
Madhya…
Rajasthan
TamilNadu
UttarPradesh
Telangana
AT&CLoss
Levels
2014-15 (Actuals)
2018-19 (Projected)
30%
53%
17%
0.7
Discoms IPPs Non-Stressed Stressed
States of Andhra Pradesh,
Rajasthan and Telangana
plan to reduce AT&C loss
levels below 15% by 2018-19
60-70%
Exposure of Debts
for Public Sector
Banks in Percentage
– Discoms have
30% share
Of INR. 4 Trillion of
estimated staggering
losses, close to 2/3rd of
contribution comes from
8 states opted for UDAY
Tamil Nadu, Rajasthan, Uttar Pradesh and
Haryana to have best savings in the range of
INR.1 -1.80 for cost of supply. Rest of the
states would have a benefit of 80p/unit
Cost of Supply Savings Variance
L H
States planned for less than 15% AT&C loss levels by 2018-19 States opted for UDAY scheme
Legend
Source: enincon perspective
INR 2.5 Trillion
Piled up losses shall be
wiped off by FY’2018-19
through UDAY

4. 75% of the Discoms debt taken over by the respective states
in a phased manner of 50% in FY’2015-16 and remaining 25%
in FY’2016-17
Research Case
Potential Savings on cost of supply for all
states
INR 0.75-0.85 / Unit
Per Unit Savings of the Key
States (In INR/ Unit)
Haryana Uttar Pradesh
Rajasthan
Predicting a changing market with greater degree of
accuracy demands thorough details and a trend to
identify with. Ironically what UDAY offers on stage for
State’s which opted for the scheme has neither to
comply with. However, there will be certain
implications on the state’s financial health courtesy the
taking over debt of Discoms by state of upto 75% by
2016-17 in a phased manner of 50% in 2015-16 and
another 25% in the following fiscal.
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Financial & Operational Opportunity Track for Discoms
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Tamil Nadu
INR 1-1.80/Unit
Best Saving
Range
Key Uncertainties that will alter the long-term future
post UDAY………
 Increase in fiscal deficit
 Less pressure on liquidity and cost of market
borrowings to be consistent with state’s credit profile
 DDUGYJ, PSDF and IPDS – Will these schemes reduce
the burden on states‘ finance ?
This would be done through issue of non SLR SDLs
(State Development Loans) directly linked to market or
to existing lenders holding the debts of Discoms to
appropriate extent. Hence, to estimate a ball park in
terms of the risks for the State’s to be negated an
identification of main uncertainties becomes
quintessential in order to develop signposts to effect
robust decision making process.
Though, tacky but UDAY might prove to be wild card for states to overcome the political
embargoes and improve both the power situation and tariff conundrum in one go.
However, challenges are umpteen which would shape even big with years to come and
only efficient dealing of them would ensure UDAY as a fit for state’s else the financial
condition would witness a sunset and delve so deep in darkness that restructuring will
be difficult.
In order to address the much-felt need for the power
distribution industry in India and to understand will
UDAY be able to heel the financial dent which the
Indian DISCOMs are facing as of now , enincon llp is
coming up with a report tracking the financial and
operational opportunity for Discoms in India under the
UDAY scheme.

5. Research Case
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ENINCON
Research &
Services
Framework
Research
Reports
ENINCON
Research
Desk
Business
Stakeholders/Partici
pants
Experts Insights/
Market view
Validated data &
analysis
Opportunity
mapping
& Market
sizing
First hand
sector
knowledge
& inputs
Gist of the report
in .pdf format for
ready use
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cost
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Solution
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research
inputs
from F2F
interviews
ENINCON’S Research
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Germinates from
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fresh to evolve path
finding guide for
all stake holders
through quality
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seamless integration
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ENINCON
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delivering domain
knowledge, market
insights & future
outlook
Financial & Operational Opportunity Track for Discoms
in India under UDAY| 4

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ENINCON
Research Objective & Results
Financial & Operational Opportunity Track for
Discoms in India Under UDAY examines the state wise
operational and financial opportunities for the power distribution companies in
India. The report evaluates how UDAY can prove to be a one stop solution for
cutting down the debt burden of Discoms in India along with improving the power
situation and tariff conundrum in one go.ResearchObjective
ResearchResults
1. Examining the power
distribution scenario in India
2. Developing an understanding
about UDAY
3. Evaluating how UDAY can be a
role reversal for Indian Discoms
4. Evaluating the opportunities
associated with UDAY for
improving the operational and
financial crunch of power
distribution companies in India
1. Evaluating the success and
failures of financial restructuring
programme
2. State wise operational
opportunity track for DISCOMs
under UDAY
3. State wise financial opportunity
track for DISCOMs under UDAY
4. Identifying best states to get
benefitted most under UDAY
Copyright© 2016 ENINCON, All rights reserved
Market series
report- Opportunity
Track for Discoms
under UDAY-
Churning out the
financial &
operational
opportunity for
the Indian
power
distribution
companies
Financial & Operational Opportunity Track for Discoms
in India Under UDAY| 5

7. Copyright© 2016 ENINCON, All rights reserved
ENINCON
Research reports
evolve a path finding
guide for all
stakeholders through
quality information and
analysis
Key Queries Resolved
• What is the power distribution
scenario in India? Must buy for
 Power Distribution Companies
 State Electricity Boards
 Ministry of Power
 State Government
 Electrical Equipment Providers
 Banks
 Other Financial/ Lending
Institutes
 Transmission Service Providers
 O&M Service Providers
 Research Firms
 Research Bodies/ Institutes
 Industry Associations
 Consultants
Identifying
eccentric
opportunities
Opportunities
for PSUs and
the savings for
DISCOMs
Opportunities
for equipment
manufacturers
Opportunities
for equipment
manufacturers
Power Distribution in
India
Financial
Opportunity
Operational
Opportunity
• What are the operational
opportunities hidden for power
distribution companies in India under
UDAY?
• What would be the opportunities for
Discoms in metering , billing , power,
trading , feeder segregation and many
more etc?
• What are the key financial opportunity
parameters for the power distribution
companies in India under UDAY?
• What could be new means of revenue
generation for Discoms?
• How would they reduce the fiscal deficit and
increase the liquidity?
• How UDAY scheme can change the current
picture of power distribution in India? And
what are the opportunities for Discoms?
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UDAY Scheme

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1. Executive Summary
2. Power Distribution in India and the UDAY Scheme
2.1 Issues with Power Distribution in India
2.2 Financial Restructuring Programme - Evaluating Success & Failures
2.3 UDAY- Scheme Overview
3. Operational Opportunity for Discoms in Uttar Pradesh
3.1 Substation
3.2 Metering
3.3 Billing
3.4 Transformers
3.5 Equipments
3.6 Capacity Expansion
3.7 Feeder Segregation
3.8 Distribution Lines
3.9 Franchise / Private
3.10 Power Sale
3.11 Open Access
3.12 Cabling
3.13 Energy Efficiency Practices
3.14 Operation & Maintenance
4. Financial Opportunity for Discoms in Uttar Pradesh
4.1 New Source of Revenue Generation
4.2 Decrease in Fiscal Deficit
4.3 Increase in Liquidity
4.4 Ease in Availability of Loans
4.5 Revised Tariff Structure as per Universal Currency
4.6 Application of DDUGY & Integrated Power Development Scheme
Contents & Coverage
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Financial & Operational Opportunity Track for Discoms in India under UDAY| 7
5. Operational Opportunity for Discoms in Uttrakhand
5.1 Substation
5.2 Metering
5.3 Billing
5.4 Transformers
5.5 Equipments
5.6 Capacity Expansion
5.7 Feeder Segregation
5.8 Distribution Lines
5.9 Franchise/ Private
5.10 Power Sale
5.11Open Access
5.12 Cabling
5.13 Energy Efficiency Practices
5.14 Operation & Maintenance
6. Financial Opportunity for Discoms in Uttrakhand
6.1 New Source of Revenue Generation
6.2 Decrease in Fiscal Deficit
6.3 Increase in Liquidity
6.4 Ease in Availability of Loans
6.5 Revised Tariff Structure as per Universal Currency
6.6 Application of DDUGY & Integrated Power Development Scheme
7. Operational Opportunity for Discoms in Jammu & Kashmir
7.1 Substation
7.2 Metering
7.3 Billing
7.4 Transformers
7.5 Equipments
7.6 Capacity Expansion

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Financial & Operational Opportunity Track for Discoms in India under UDAY| 8
7.7 Feeder Segregation
7.8 Distribution Lines
7.9 Franchise/ Private
7.10 Power Sale
7.11Open Access
7.12 Cabling
7.13 Energy Efficiency Practices
7.14 Operation & Maintenance
8. Financial Opportunity for Discoms in Jammu & Kashmir
8.1 New Source of Revenue Generation
8.2 Decrease in Fiscal Deficit
8.3 Increase in Liquidity
8.4 Ease in Availability of Loans
8.5 Revised Tariff Structure as per Universal Currency
8.6 Application of DDUGY & Integrated Power Development Scheme
9. Operational Opportunity for Discoms in Himachal Pradesh
9.1 Substation
9.2 Metering
9.3 Billing
9.4 Transformers
9.5 Equipments
9.6 Capacity Expansion
9.7 Feeder Segregation
9.8 Distribution Lines
9.9 Franchise / Private
9.10 Power Sale
9.11 Open Access
9.12 Cabling
9.13 Energy Efficiency Practices
9.14 Operation & Maintenance
10. Financial Opportunity for Discoms in Himachal Pradesh
10.1 New Source of Revenue Generation
10.2 Decrease in Fiscal Deficit
10.3 Increase in Liquidity
10.4 Ease in Availability of Loans
10.5 Revised Tariff Structure as per Universal Currency
10.6 Application of DDUGY & Integrated Power Development Scheme
11. Operational Opportunity for Discoms in Haryana
11.1 Substation
11.2 Metering
11.3 Billing
11.4 Transformers
11.5 Equipments
11.6 Capacity Expansion
11.7 Feeder Segregation
11.8 Distribution Lines
11.9 Franchise / Private
11.10 Power Sale
11.11 Open Access
11.12 Cabling
11.13 Energy Efficiency Practices
11.14 Operation & Maintenance
12. Financial Opportunity for Discoms in Haryana
12.1 New Source of Revenue Generation
12.2 Decrease in Fiscal Deficit
12.3 Increase in Liquidity
12.4 Ease in Availability of Loans
12.5 Revised Tariff Structure as per Universal Currency
12.6 Application of DDUGY & Integrated Power Development Scheme

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13. Operational Opportunity for Discoms in Rajasthan
13.1 Substation
13.2 Metering
13.3 Billing
13.4 Transformers
13.5 Equipments
13.6 Capacity Expansion
13.7 Feeder Segregation
13.8 Distribution Lines
13.9 Franchise / Private
13.10 Power Sale
13.11 Open Access
13.12 Cabling
13.13 Energy Efficiency Practices
13.14 Operation & Maintenance
14. Financial Opportunity for Discoms in Rajasthan
14.1 New Source of Revenue Generation
14.2 Decrease in Fiscal Deficit
14.3 Increase in Liquidity
14.4 Ease in Availability of Loans
14.5 Revised Tariff Structure as per Universal Currency
14.6 Application of DDUGY & Integrated Power Development Scheme
15. Operational Opportunity for Discoms in Punjab
15.1 Substation
15.2 Metering
15.3 Billing
15.4 Transformers
15.5 Equipments
15.6 Capacity Expansion
15.7 Feeder Segregation
15.8 Distribution Lines
15.9 Franchise / Private
15.10 Power Sale
15.11 Open Access
15.12 Cabling
15.13 Energy Efficiency Practices
15.14 Operation & Maintenance
16. Financial Opportunity for Discoms in Punjab
16.1 New Source of Revenue Generation
16.2 Decrease in Fiscal Deficit
16.3 Increase in Liquidity
16.4 Ease in Availability of Loans
16.5 Revised Tariff Structure as per Universal Currency
16.6 Application of DDUGY & Integrated Power Development Scheme
17. Operational Opportunity for Discoms in Maharashtra
17.1 Substation
17.2 Metering
17.3 Billing
17.4 Transformers
17.5 Equipments
17.6 Capacity Expansion
17.7 Feeder Segregation
17.8 Distribution Lines
17.9 Franchise / Private
17.10 Power Sale

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17.11 Open Access
17.12 Cabling
17.13 Energy Efficiency Practices
17.14 Operation & Maintenance
18. Financial Opportunity for Discoms in Maharashtra
18.1 New Source of Revenue Generation
18.2 Decrease in Fiscal Deficit
18.3 Increase in Liquidity
18.4 Ease in Availability of Loans
18.5 Revised Tariff Structure as per Universal Currency
18.6 Application of DDUGY & Integrated Power Development Scheme
19. Operational Opportunity for Discoms in Madhya Pradesh
19.1 Substation
19.2 Metering
19.3 Billing
19.4 Transformers
19.5 Equipments
19.6 Capacity Expansion
19.7 Feeder Segregation
19.8 Distribution Lines
19.9 Franchise / Private
19.10 Power Sale
19.11 Open Access
19.12 Cabling
19.13 Energy Efficiency Practices
19.14 Operation & Maintenance
20. Financial Opportunity for Discoms in Madhya Pradesh
20.1 New Source of Revenue Generation
20.2 Decrease in Fiscal Deficit
20.3 Increase in Liquidity
20.4 Ease in Availability of Loans
20.5 Revised Tariff Structure as per Universal Currency
20.6 Application of DDUGY & Integrated Power Development Scheme
21. Operational Opportunity for Discoms in Gujarat
21.1 Substation
21.2 Metering
21.3 Billing
21.4 Transformers
21.5 Equipments
21.6 Capacity Expansion
21.7 Feeder Segregation
21.8 Distribution Lines
21.9 Franchise / Private
21.10 Power Sale
21.11 Open Access
21.12 Cabling
21.13 Energy Efficiency Practices
22.14 Operation & Maintenance
22. Financial Opportunity for Discoms in Gujarat
22.1 New Source of Revenue Generation
22.2 Decrease in Fiscal Deficit
22.3 Increase in Liquidity
22.4 Ease in Availability of Loans
22.5 Revised Tariff Structure as per Universal Currency
22.6 Application of DDUGY & Integrated Power Development Scheme

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25.7 Feeder Segregation
25.8 Distribution Lines
25.9 Franchise / Private
25.10 Power Sale
25.11 Open Access
25.12 Cabling
25.13 Energy Efficiency Practices
25.14 Operation & Maintenance
26. Financial Opportunity for Discoms in Chhattisgarh
26.1 New Source of Revenue Generation
26.2 Decrease in Fiscal Deficit
26.3 Increase in Liquidity
26.4 Ease in Availability of Loans
26.5 Revised Tariff Structure as per Universal Currency
26.6 Application of DDUGY & Integrated Power Development Scheme
27. Operational Opportunity for Discoms in Bihar
27.1 Substation
27.2 Metering
27.3 Billing
27.4 Transformers
27.5 Equipments
27.6 Capacity Expansion
27.7 Feeder Segregation
27.8 Distribution Lines
27.9 Franchise / Private
27.10 Power Sale
27.11 Open Access
27.12 Cabling
27.13 Energy Efficiency Practices
27.14 Operation & Maintenance
23. Operational Opportunity for Discoms in Andhra Pradesh
23.1 Substation
23.2 Metering
23.3 Billing
23.4 Transformers
23.5 Equipments
23.6 Capacity Expansion
23.7 Feeder Segregation
23.8 Distribution Lines
23.9 Franchise / Private
23.10 Power Sale
23.11 Open Access
23.12 Cabling
23.13 Energy Efficiency Practices
23.14 Operation & Maintenance
24. Financial Opportunity for Discoms in Andhra Pradesh
24.1 New Source of Revenue Generation
24.2 Decrease in Fiscal Deficit
24.3 Increase in Liquidity
24.4 Ease in Availability of Loans
24.5 Revised Tariff Structure as per Universal Currency
24.6 Application of DDUGY & Integrated Power Development Scheme
25. Operational Opportunity for Discoms in Chhattisgarh
25.1 Substation
25.2 Metering
25.3 Billing
25.4 Transformers
25.5 Equipments
25.6 Capacity Expansion

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Financial & Operational Opportunity Track for Discoms in India under UDAY| 12
28. Financial Opportunity for Discoms in Bihar
28.1 New Source of Revenue Generation
28.2 Decrease in Fiscal Deficit
28.3 Increase in Liquidity
28.4 Ease in Availability of Loans
28.5 Revised Tariff Structure as per Universal Currency
28.6 Application of DDUGY & Integrated Power Development Scheme
29. Operational Opportunity for Discoms in Odisha
29.1 Substation
29.2 Metering
29.3 Billing
29.4 Transformers
29.5 Equipments
29.6 Capacity Expansion
29.7 Feeder Segregation
29.8 Distribution Lines
29.9 Franchise / Private
29.10 Power Sale
29.11 Open Access
29.12 Cabling
29.13 Energy Efficiency Practices
29.14 Operation & Maintenance
30. Financial Opportunity for Discoms in Odisha
30.1 New Source of Revenue Generation
30.2 Decrease in Fiscal Deficit
30.3 Increase in Liquidity
30.4 Ease in Availability of Loans
30.5 Revised Tariff Structure as per Universal Currency
30.6 Application of DDUGY & Integrated Power Development Scheme
31. Operational Opportunity for Discoms in Karnataka
31.1 Substation
31.2 Metering
31.3 Billing
31.4 Transformers
31.5 Equipments
31.6 Capacity Expansion
31.7 Feeder Segregation
31.8 Distribution Lines
31.9 Franchise / Private
31.10 Power Sale
31.11 Open Access
31.12 Cabling
31.13 Energy Efficiency Practices
31.14 Operation & Maintenance
32. Financial Opportunity for Discoms in Karnataka
32.1 New Source of Revenue Generation
32.2 Decrease in Fiscal Deficit
32.3 Increase in Liquidity
32.4 Ease in Availability of Loans
32.5 Revised Tariff Structure as per Universal Currency
32.6 Application of DDUGY & Integrated Power Development Scheme
33. Operational Opportunity for Discoms in Kerala
33.1 Substation
33.2 Metering
33.3 Billing
33.4 Transformers
33.5 Equipments
33.6 Capacity Expansion

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33.7 Feeder Segregation
33.8 Distribution Lines
33.9 Franchise / Private
33.10 Power Sale
33.11 Open Access
33.12 Cabling
33.13 Energy Efficiency Practices
33.14 Operation & Maintenance
34. Financial Opportunity for Discoms in Kerala
34.1 New Source of Revenue Generation
34.2 Decrease in Fiscal Deficit
34.3 Increase in Liquidity
34.4 Ease in Availability of Loans
34.5 Revised Tariff Structure as per Universal Currency
34.6 Application of DDUGY & Integrated Power Development Scheme