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Uday’ gets discoms back in shape and boosts power supply

August 03, 2017

SHIMLA – Aug 03, 2017

Ujwal DISCOM Assurance Yojana (UDAY) is the financial turnaround and revival package for electricity distribution companies of India (DISCOMs) initiated by the Government of India led by Hon’ble Prime Minister Sh Narendra Modi. The scheme was announced by Sh Piyush Goyal, Minister of State (IC) for Power, Coal & New and Renewable Energy in November 2015. Till now 27 states/UT, have joined this scheme.

During a review meeting taken recently by the Hon’ble Prime Minister Sh Narendra Modi, 'Uday' has shown major advancements for ailing state power distribution companies by slowly putting them back in shape and reducing the duration of blackouts in the nearly two years.

When the scheme was announced, all state discoms were gasping under a collective debt of Rs 3.95 lakh crore. Almost two years down the line, the participating states now have found relief from the debt by floating bonds worth Rs 2.32 lakh crore, or nearly 87% of the burden. Under UDAY, high loss making states like UP, Rajashthan & Tamil Nadu have decreased their losses by 2/3rd to 3/4th while Haryana has reduced losses by 90%. Overall DISCOM losses have reduced by 41% under this government.

 

Also, UDAY has resulted in the emergence of a healthy Power Sector with a reduction in outstanding liabilities of DISCOMs as evident with the 46% fall in CPSU dues from June, 2016 to May, 2017.Power purchase cost, AT&C losses and interest cost have all started decreasing resulting in 40% reduction in revenue cost gap under Modi Government.
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