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Deadline for joining UDAY scheme have been extended to March 2017

India: The Government of India extended the deadline for joining UDAY scheme to March 2017, focusing on reducing the debt of state distribution companies. The scheme would payoff 50% of the debt to the Discoms by March 2016 and additional 25% debt by March 2017. This would ensure the profitability of distribution companies by improving their operational efficiency, decreasing the cost of power, ensuring financial discipline and reduce the interest burden. Around 20 states have joined the scheme and government aims to include more states through extended deadline.

Techsci Research depicts that the extension of the UDAY scheme would motivate more Discoms to avail the benefit of the scheme. It would give a major boost to the distribution sector in India by improving the financial strength of state Discoms which are currently facing huge losses due to operational inefficiency. Due to burgeoning debt, the Discoms fail to expand their network thus impacting the growth of distribution sector negatively. The improved financial condition of Discoms would help them to expand their distribution network which would result in increased demand for power and distribution transformers. This would give a major boost to the Power Transformer and Distribution Market in the country.

According to a recent released report of TechSci Research, India Power & Distribution Transformers Market Forecast & Opportunities, 2020”, the power and distribution transformers market in India is projected to grow at a CAGR of over 10% till 2020. Power transformers contribute a major portion in overall market revenues due to their higher price points. Under the 12thfive year plan (2012-2017), Indian government allocated US$ 200 billion for strengthening the country’s power generation, transmission and distribution sector.


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