UDAY comes a cropper, puts power distribution companies in the red

The Centre’s efforts to turn around state-owned power distribution companies (discoms) might falter, affecting the finances of state governments. 

The Ujwal Discom Assurance Yojana (UDAY), launched in 2015, will conclude by the end of this fiscal year, leaving discoms in the red and the finances of state governments in trouble. 

The rising cost of power, along with increased power demand due to electrification schemes, has increased the expenditure of discoms.

At the same time, minimal tariff hikes in the past four years have come in the way of improving their turnover.

The cumulative losses of discoms (21 states) stood at