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Maharashtra joins Centre’s UDAY Scheme for Discom revival

 


Four major States namely Maharashtra, Uttar Pradesh , Bihar and Odisha have agreed to join Central Government’s “UDAY” (Ujwal Discom Assurance Yojana) Scheme for Discom revival.

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.

 
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