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Power Sector Reforms – Uttar Pradesh, Maharashtra, Bihar & Orissa join UDAY

This was announced by Shri Piyush Goyal, Minister of State ( IC) for Power, Coal and New & Renewable Energy at a media briefing here today .

Shri Goyal said ? this is a very important day in the history of power sector in India where on one day, 4th Jan , four very large and important States have agreed to come on board and joined the UDAY Scheme.

? Shri Goyal further stated that within 2 months of the announcement of UDAY Scheme , a total of 15 out of 29 States /UTs have voluntarily joined UDAY which covers 90 % of the total debt of Discoms .

The fifteen States are Uttar Pradesh, Bihar , Odisha , Maharashtra , Andhra Pradesh, Himachal Pradesh, Madhya Pradesh, Uttarakhand, Chhattisgarh, Jammu & Kashmir , Jharkhand , Gujarat , Punjab, Haryana and Rajasthan .

  ABOUT UDAY SCHEME:   The Scheme ? UDAY (Ujwal Discom Assurance Yojana) has been launched to improve financial and operational efficiencies of power distribution companies (DISCOMs).

It envisages to reduce interest burden, cost of power and AT&C losses.

Consequently, DISCOM would become sustainable to supply adequate and reliable power enabling 24×7 power supply.

The scheme provides that States would take over 75% debt of Discoms, as on 30th September, 2015 in two years.

UDAY has inbuilt incentives encouraging State Governments to voluntarily restructure their debts.

Source: news.niticentral.com