Karnataka, Goa ink pact to join UDAY scheme: Piyush Goyal

Karnataka, Goa ink pact to join UDAY scheme: Piyush Goyal

Karnataka and Goa joins government’s popular initiative, Ujwal DISCOM Assurance Yojana (UDAY), a scheme meant for the revival of discoms. Karnataka and Goa have signed an agreement to join the scheme that may result in a total gain of about Rs 4,570 crore to both the states over next 3 years.

Under this scheme for reviving financially stressed electricity distribution utilities, state governments takeover 75% of the debt with the electricity distribution utilities. The remaining debt is issued as discom bonds, backed by state governments.

“Karnataka signed UDAY MoU resulting in gains of around Rs 4,300 crore over the next 3 years,” Power Minister Piyush Goyal said in a tweet.

Goyal also tweeted: “Goa signed UDAY MOU in presence of Goa chief minister. State stands to gain around Rs 270 crore over the next 3 years through UDAY reforms.”

Earlier this month, he had said that Assam is also keen to join the UDAY scheme. The other four states Kerala, Tamil Nadu, West Bengal and Puducherry – had also evinced interest to join the scheme once the elections were over, he said earlier.

Government had earlier said that the Power Ministry would soon approach the cabinet to seek approval for enabling private sector electricity distribution companies to get operational benefits UDAY.

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