UDAY states see Rs 11,989-cr drop in interest cost

The interest cost of states participating in Ujwal Discom Assurance Yojana (UDAY) scheme has come down by around Rs 11,989 crore for April-December of 2016-17 over the year-ago period.

"As per the information available, the interest cost of states participating in UDAY has reduced by Rs 11,989 crore, approximately for the first nine months of the current financial year compared to the financial year (2015-16)," Power Minister Piyush Goyal said in a reply to the Rajya Sabha.

So, the question of UDAY -- the scheme designed to nurse debt-laden electricity distribution companies back to health -- opening up another window of fresh debts does not arise, he added.
 

Ujwal Discom Assurance Yojana (UDAY) aims to reduce the interest burden, cost of power and energy losses in state-owned distribution utilities with an objective of achieving their sustainable operational and financial turnaround.

In a separate reply to the House, the minister said so far 22 states and one Union Territory (UT) are on board as far as UDAY is concerned.

"Out of Rs 3,75,430 crore debt of state-owned power distribution utilities, as existing on March 31, 2015, UDAY states account for Rs 3,56,152 crore," the minister said.