The delays faced by most States in achieving financial and operational goals under the much-touted Ujwal Discom Assurance Yojana (UDAY), launched in 2015, are raising niggling questions on the efficacy of the scheme.
An analysis of data from the Power Ministry reveals that overdues by State power distribution companies (Discoms) to power generators (Gencos) have been rising, indicative of the dismal performance of Discoms in most States.
At the end of February 2019, of the total outstanding amount of ₹41,707 crore owed by Discoms to Gencos, more than half was overdue. This implies that ₹27,466 crore of dues have not been settled within the mandated credit period.
States such as Rajasthan, Madhya Pradesh, Andhra Pradesh, Karnataka, Tamil Nadu and Maharashtra had overdues of 60-70 per cent (as a proportion of their overall outstanding amount) as of February 2019. Read More