Govt looking at amending UDAY to accommodate states with privatised Discoms

Govt looking at amending UDAY to accommodate states with privatised Discoms

Amendments to its UDAY programme to accommodate states like Odisha which have already privatised their power distribution sector is under active consideration of the government.

“States that have privatised their Discoms have requested the Central Government that they would like to participate in Uday…I am going back to the Cabinet to see how we can support states like Odisha which are privatised but are goingthrough problems and can ensure how they can enjoy the benefits of Uday,” Piyush Goyal, minister for power, coal and RE said on Friday.

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Talking on the progress of the Uday Scheme for revival of Discoms as also improve state finances, Goyal said bonds worth Rs 1.5-1.75 lakh crore are expected to be issued in the ongoing fiscal.

“This year, you may see slightly bigger amount. May be Rs 1.5-1.75 lakh crore of Uday bonds will be issued,” Goyal told reporters here.

Uday bonds worth about Rs 1.11 lakh crore were issued by 8 states in the last financial year.

As many as 10 states have already signed agreements with the Centre to join Uday and another eight states and one union territory have agreed to join the scheme.

UDAY or the Ujwal DISCOM Assurance Yojana Is seen as the Centre’s most comprehensive power sector reform ever for improvement in financial and operational efficiencies of State Power Distribution Companies (DISCOMs), the weakest link in the power value chain.

Despite being a voluntary scheme 18 States and 1 Union Territory across political and regional lines have signed agreements or agreed to join. UDAY bonds worth about Rs. 1 lakh crore were issued within three weeks.

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Under the UDAY programme, the states will issue bonds to take on 75 per cent of the debt of these discoms and the remaining credit will be paid through state-guaranteed bonds issued by discoms.

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