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States Joining UDAY
18 States and one Union Territory viz. Puducherry have given their ‘in-principle’ approval to join the scheme Ujwal DISCOM Assurance Yojana (UDAY). So far, 10 States have already signed the Memorandum of Understanding (MoUs) with Ministry of Power under UDAY. This was stated by Shri Piyush Goyal, Minister of State (IC) for Power, Coal & New and Renewable Energy in a written reply to a question in the Rajya Sabha today.

The Government of India has launched UDAY for the financial and operational turnaround of state-owned Power Distribution Companies (DISCOMs). The scheme aims to reduce interest burden, reduce the cost of power, reduce power losses in Distribution sector, and improve operational efficiency of DISCOMs. The scheme also incentivizes the States by exempting State takeover of DISCOM debts from FRBM limits for two years; increased supply of domestic coal; coal linkage rationalization; liberally allowing coal swaps from inefficient to efficient plants; allocation of coal linkages to States at notified prices and additional/priority funding in schemes of Ministry of Power and Ministry of New & Renewable Energy, if they meet the operational milestones in the scheme, the Minister added. 

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