Jammu & Kashmir (J&K) became the 9th state to sign the memorandum of understanding(MoU) for power distribution reforms, the Ujwal Discoms Assurance Yojana (UDAY). It’s a tripartite agreement between the Union Ministry of Power, state governments and the discoms.
The other eight states are Rajasthan, Uttar Pradesh, Chhattisgarh, Jharkhand, Bihar, Gujarat, Haryana and Punjab. An overall net benefit of approximately Rs 9,800 crore would accrue to J&K by opting to participate in UDAY, by way of savings in interest cost, reduction in aggregate technical and commercial (AT&C) and transmission losses, interventions in energy efficiency, and coal reforms, said the officials.
Ujwal Discoms Assurance Yojana(UDAY):
The Union Cabinet chaired by the Hon’ble Prime Minister Shri Narendra Modi announced scheme moved by the Ministry of Power – Ujwal DISCOM Assurance Yojna or UDAY. UDAY provides for the financial turnaround and revival of Power Distribution companies (DISCOMs), and importantly also ensures a sustainable permanent solution to the problem. UDAY is a path breaking reform for realizing the Hon’ble Prime Minister’s vision of affordable and accessible 24×7 Power for All.
- The weakest link in the value chain is distribution, wherein DISCOMs in the country have accumulated losses of approximately Rs. 3.8 lakh crore and outstanding debt of approximately Rs. 4.3 lakh crore (as on March, 2015).
- Financially stressed DISCOMs are not able to supply adequate power at affordable rates, which hampers quality of life and overall economic growth and development.
So lets do:
- Who is the Union Power Minister of Statefor Power, Coal, New and Renewable Energy of India?
- Which is 9th state to sign the (MoU) for power distribution reforms, the UDAY?
Source – The Hindu