UDAY helps reduce subsidy dependence of power discoms

UDAY helps reduce subsidy dependence of power discoms
The Centre’s power distribution reforms scheme, Ujwal Discom Assurance Yojana (UDAY), has helped discoms reduce their subsidy dependence on state governments owing to improved liquidity position, a report released by the Rural Electrification Corporation (REC) said on Wednesday.

State-owned power distribution companies of Rajasthan, Haryana, Andhra Pradesh, Chhattisgarh, Madhya Pradesh and Bihar have reduced their subsidy, booked as percentage of the revenue, in the range of 5-10 per cent in the current financial year, said REC, a listed navratna public sector enterprise under the ministry of power that monitors UDAY performance.

is the most comprehensive power sector reform ever planned and executed in the country. It is a classic example of comprehensive, cooperative, collaborative, competitive, consensual and compassionate federalism,” Union power minister Piyush Goyal said. Of the 26 states that have joined UDAY, 15 states have issued bonds against the debt of the discoms that they took over as part of the restructuring. The total amount of bonds issued is Rs 2.09 lakh crore by the states and Rs 0.24 lakh crore by the discoms. Read More…

Credit By: Business Standard

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