Troubled power sector — the way forward

Troubled power sector — the way forward

Most of the problems of the power sector emanate from the poor health of the Discoms. Launched in 2015, “UDAY” (Ujwal Discom Assurance Yojana) was to provide much needed relief to these Discoms. However, it provided only a temporary relief, UDAY itself was a brilliant idea.

The approach outlined under UDAY had been successful in Gujarat. It turned around the power sector in that State. It was a model to be implemented in rest of the country and “UDAY” was an instrument to deliver that. But it didn’t happen, at least in the manner it was expected to.

Under UDAY, States were to take over 75 per cent of Discom debts as on September 30, 2015. This was to provide fiscal space to the Discoms and “improve” their balance sheets.  Read More

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