Ujwal DISCOM Assurance Yojana (UDAY)

[shineseb]

The Ujwal DISCOM Assurance Yojana (UDAY) focuses on four major initiatives improving operational efficiencies of discoms; reduction of cost of power; reduction in interest cost of discoms and enforcing financial discipline on discoms through alignment with state finances says a CLSA report.


CLSA points out that collectively discoms owe banks Rs 5.5 lakh crore. This is a sum equivalent to two-and-a-half times the defence budget; roughly six times the amount that will be spent this financial year on building roads; and enough to wipe out India’s fiscal deficit. Rajasthan alone having a debt of Rs 85,000 crore, followed by Tamil Nadu at Rs 70,000 crore and UP at Rs 32,000 crore. Read more on the attachment.