The Jharkhand government has joined Andhra Pradesh in conveying its in-principle approval for joining the Uday (Ujwal Discom Assurance Yojana) scheme for recasting debts of distressed distribution companies (discoms), it was announced on Sunday.
"Congratulations to Jharkhand CM Shri @dasraghubar ji on the State joining UDAY (Ujwal DISCOM Assurance Yojana). 24X7 power for State not far," tweeted Power Minister Piyush Goyal.
Andhra Pradesh had on Saturday conveyed its in-principle approval for Uday, said the power ministry.
According to the ministry, the scheme provides that states would take over 75 percent debt of discoms, as on September 30, 2015 in two years, and has inbuilt incentives encouraging state governments to voluntarily restructure their debts.
These incentives include taking over of discoms' debt by states outside the fiscal deficit limits, reduction in the cost of power through measures like coal linkage rationalization, liberal coal swaps, coal price rationalization, correction in coal grade slippage, allocation of coal linkages at notified prices and reduction in interest burden, a ministry release added.
