Maharashtra becomes 17th state to join UDAY Scheme
Maharashtra became 17th state to Central Government’s Ujwal Discom Assurance Yojna (UDAY) scheme.
It will help Maharashtra to reap benefits worth Rs 9,725 crore by way of cheaper funds, transmission losses, energy efficiency and coal reforms during the period of the turnaround.
Under the UDAY Scheme, Maharashtra has committed to take more than 75% of the discom’s non-capex debt of around 6,600 crore rupees in the current year.
The balance 25% debt will be converted into bonds or re-priced at cheaper rates which will reduce the interest burden by 595 crore rupees.
About Ujwal DISCOM Assurance Yojna (UDAY)
- UDAY Scheme was launched by Union Ministry of Power for financial restructuring of debt of Power Distribution companies (DISCOMs).
- It aims for financial revival and turnaround of DISCOMs and also ensures a sustainable permanent solution to the problem.
- Power DISCOMs of states by joining this scheme can convert their debt into bonds which can be issued in market as well as roll out number of measures to improve efficiency at power plants.
- It will make DISCOMs financially and operationally healthy so they can supply adequate power at affordable rates.
- It will help in reduction in interest cost of DISCOMs and enforcing financial discipline in DISCOMs through alignment with State finances.