Tamil Nadu joins UDAY; could accrue Rs 22,000-crore benefit in first 3 yrs

TN had been reluctant to join UDAY over mandatory revision of tariff every quarter under the scheme

After serious opposition in the past, Tamil Nadu has decided to join the Centre's Ujwal DISCOM Assurance Yojana (UDAY) scheme, which is meant to revive the debt stressed discoms in the county. Tamil Nadu will be the 21st state to join the scheme, which would help the Tamil Nadu Generation and Distribution Corporation (TANGEDCO) to save around Rs 11,000 crore.

The state would receive a benefit of about Rs 22,000 crore in the first three years from the scheme and about Rs 7,000 crore every year after that.

However, the flip side of joining the scheme is that the state's