Key Messages

The launch of Ujwal DISCOM Assurance Yojana (UDAY) in November 2015 gave new hope to the ailing distribution companies (DISCOMs) in India. Karnataka signed up for UDAY with a view to improve its operational efficiency. The DISCOMs under the scheme have to reduce Aggregate technical and commercial (AT&C) losses to 14.2% , and bring down the gap between average cost of supply (ACS) and average revenue realisation (ARR) to zero by 2019. As the deadline for the UDAY scheme is approaching, it is vital to review the progress made in the distribution sector in Karnataka over the last five years.