Addressing Debt Under UDAY : ACS-ARR Gaps Come Down By Almost 14 Paise Per Unit And AT&C Losses Reduce By Almost 1% in FY 17

The process of States taking over the targeted debts and issuing them as SDL Bonds has now been completed. According to MoP, as of now, the participating DISCOMs have to issue Bonds worth approximately Rs. 37,000 crores, which would be done in due course.

Addressing Debt Under UDAY : ACS-ARR Gaps Come Down By Almost 14 Paise Per Unit And AT&C Losses Reduce By Almost 1% in FY 17

Power ministry’s flagship scheme, Ujwal DISCOM Assurance Yojana (UDAY) was launched in November, 2015 and has completed more than one year of operation .

UDAY Makes A Difference In Discoms’ Finances

UDAY Makes A Difference In Discoms’ Finances

The Ujjwal Discom Assurance Yojana (UDAY) introduced by the Narendra Modi government to reduce interest burden on debt-laden power distribution companies (discoms) seems to be finally yielding results, bolstering hope that 24×7 power supply would become a reality.

PM Narendra Modi Reviews Progress Of India’s Flagship Scheme–UDAY As Also Mineral Block Auctions

Union Minister Piyush Goyal, and senior officials from PMO, NITI Aayog and other Ministries were present during the meeting

PM Narendra Modi Reviews Progress Of India’s Flagship Scheme–UDAY As Also Mineral Block Auctions

So far, 26 States and 1 UT have joined Ujwal Discom Assurance Yojana (UDAY) for financial and operational turnaround of their DISCOMs. Out of Rs.3,75,430 crores debt of state owned power distribution utilities, as existing on 31-03-2015, UDAY States account for Rs.3,62,231 crores of debt.

UDAY Scheme: Progress Snapshot

UDAY Scheme: Progress Snapshot

As on 30.09.2015 total debt of all State owned DISCOMs was Rs. 3.95 lakh Cr. The 26 states and 1 UT which have joined the UDAY scheme account for total outstanding debt of Rs. 3.82 lakh Cr. Hence, ~97% of the total outstanding debt of all State DISCOMs has been covered under UDAY.