Four major States
namely Maharashtra, Uttar Pradesh , Bihar and Odisha have agreed to join
Central Government’s “UDAY” (Ujwal Discom Assurance Yojana) Scheme for
Announcing this in New Delhi, Union Minister for Power, Coal and New &
Renewable Energy, Piyush Goyal said “this is a very important day in the
history of power sector in India where on one day, 4th Jan , four very
large and important States have agreed to come on board and joined the
UDAY Scheme.” With this a total of 15 out of 29 States /UTs are on board
the UDAY scheme covering nearly 90 % of the total debt of Discoms .
The 15 States are Uttar Pradesh, Bihar , Odisha , Maharashtra , Andhra
Pradesh, Himachal Pradesh, Madhya Pradesh, Uttarakhand, Chhattisgarh,
Jammu & Kashmir , Jharkhand , Gujarat , Punjab, Haryana and Rajasthan.
UDAY envisages to reduce interest burden, cost of power and AT&C losses
and has inbuilt incentives encouraging State Governments to voluntarily
restructure their debts. The scheme provides for states to take over 75%
of the Discom debts as on 30.09.2015 over the next two years.