After Andhra Pradesh and Jharkhand, Rajasthan has become the third state to join the Centre's UDAY (Ujwal Discom Assurance Yojana) Scheme, aimed at revival of debt-stressed power distribution companies.
"Congratulations to Chief Minister of Rajasthan Vasundhara Raje, on the State joining UDAY... Vasundhara Raje is leading one of the most spectacular power sector turnarounds. With UDAY, Rajasthan can provide power for all," Power Minister Piyush Goyal tweeted today.
Andhra Pradesh was the first state to announce joining the scheme on Saturday. The scheme is optional and operationalised through signing of an MoU between state governments, state discoms and the Centre.
The scheme has been launched to improve financial and operational efficiencies of power distribution companies. It envisages to reduce interest burden, cost of power and AT&C losses.
Consequently, the discoms would become sustainable to provide adequate and reliable power enabling 24x7 power supply. The scheme provides that states would take over 75 per cent debt of discoms, as on September 30, 2015 in two years.
