Uttar Pradesh Chief Minister Akhilesh Yadav has sought a review of the ongoing UDAY scheme, aimed at reviving debt-laden power distribution companies, citing increase in coal prices.
In this regard, Yadav has written a letter to Prime Minister Narendra Modi.
Noting that there has been an increase in coal freight as well as price in the last two years, Yadav said UDAY scheme needs to be reviewed in order to ensure that its benefits reach the beneficiaries.
"In last two years, coal price has increased by Rs 595 per metric tonne following which power tariff has gone up by 40 paise per unit. This increase is against the spirit of UDAY," Yadav said in his letter, contents of which were released today.
He said the project talks about rationalising coal prices based on Gross Calorific Value (GCV) and ensuring supply of 100 per cent crushed coal from Coal India by April 1, 2016.
"These steps are not only contrary to the spirit of UDAY but it is also against the connotation of public interest. This may have a retrograde impact on power sector and in turn outdo the benefits of other nationalisation methods specified under UDAY," he said.
Yadav has requested the Prime Minister to review the proposals once again so that the project can be implemented in letter and in spirit.
