15 States have Joined UDAY Scheme

The Finance Ministry Arun jaitley has given permission to Uttar Pradesh, Rajasthan, Jharkhand and Chhattisgarh to issue the bonds as part of the Ujwal DISCOM Assurance Yojana (UDAY).The Ministry of Finance and the RBI are working out the mode of these bond issues

 According to Union Power Under the UDAY scheme, State governments take over 75 per cent of the debt of the distribution utilities. This is then issued as non-SLR (statutory liquidity ratio) bonds. The remaining 25 per cent of debt with electricity distribution utilities is also refinanced through State government-backed DISCOM bonds.

Jharkhand, Chhattisgarh, Rajasthan and Uttar Pradesh account for around Rs. 1.5 lakh crore or about 35 per cent of the outstanding loans of State electricity distribution utilities in the country. Six States have already signed agreements to finalise their participation in the UDAY scheme including Bihar. 

Extra info:
  • Total of 15 states joining UDAY, 90 per cent of over Rs 4 lakh crore debt of discoms will be covered under the scheme. 
  • some states which are not able to join UDAY because their utilities don’t have separate account for generation, transmission and distribution. 
  • Tamil Nadu is one of those states which have a single utility which is into generation, transmission and distribution. 

So lets do:
  • Who is Union power minister of India?
  • How many state get permission to issue bond as part of the ujwal DISCOM ASSURANCE YOJANA (UDAY)?

Source – The Hindu


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