States get more time to join UDAY

  The Cabinet, chaired by Prime Minister Narendra Modi, approved an extension in the deadline for implementing the Ujjwal Discom Assurance Yojana (UDAY) by a year to March 31, 2017. The extension allows state governments to subscribe to the Centre’s debt restructuring scheme for power distribution companies this financial year too which earlier had a deadline of March 2016.
UDAY has been envisaged for the operational and financial turnaround of DISCOMs, which are considered as the weakest link in the power value chain. UDAY provides DISCOMs with a clear roadmap and opportunity to become profitable in the next 3 years.
Though, UDAY is optional, several States/Union Territories have joined or agreed to join the scheme demonstrating its necessity and appeal. However, some States were unable to join the scheme due to time constraints in completing the processes or inability to take major policy decisions such as joining UDAY due to on-going election processes. Extension of the timeline will enable States to participate in this scheme by allowing adequate time to complete the multi-stakeholder process required for joining and/or issuing Bonds. In addition, Jammu & Kashmir will be able to float further bonds.
Under UDAY, so far 20 states and union territories have given their consent to join of which, 12 states, namely, Rajasthan, Uttar Pradesh, Chhattisgarh, Jharkhand, Punjab, Bihar, Haryana, Gujarat, Uttarakhand, Karnataka, Goa and Jammu & Kashmir have already signed MoUs with the central government. In the year 2015-16, Bonds worth Rs 99,541 crore were floated by the participating States to clear 50 per cent of the outstanding debt of states and outstanding CPSU dues in Jharkhand and Jammu & Kashmir. Further, DISCOM bonds worth Rs 11,524 crore were floated. In the year 2016-17, bonds worth Rs 48,391 crore have been floated by Rajasthan, Uttar Pradesh and Punjab.

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States get more time to join UDAY

  The Cabinet, chaired by Prime Minister Narendra Modi, approved an extension in the deadline for implementing the Ujjwal Discom Assurance Yojana (UDAY) by a year to March 31, 2017. The extension allows state governments to subscribe to the Centre’s debt restructuring scheme for power distribution companies this financial year too which earlier had a deadline of March 2016.
UDAY has been envisaged for the operational and financial turnaround of DISCOMs, which are considered as the weakest link in the power value chain. UDAY provides DISCOMs with a clear roadmap and opportunity to become profitable in the next 3 years.
Though, UDAY is optional, several States/Union Territories have joined or agreed to join the scheme demonstrating its necessity and appeal. However, some States were unable to join the scheme due to time constraints in completing the processes or inability to take major policy decisions such as joining UDAY due to on-going election processes. Extension of the timeline will enable States to participate in this scheme by allowing adequate time to complete the multi-stakeholder process required for joining and/or issuing Bonds. In addition, Jammu & Kashmir will be able to float further bonds.
Under UDAY, so far 20 states and union territories have given their consent to join of which, 12 states, namely, Rajasthan, Uttar Pradesh, Chhattisgarh, Jharkhand, Punjab, Bihar, Haryana, Gujarat, Uttarakhand, Karnataka, Goa and Jammu & Kashmir have already signed MoUs with the central government. In the year 2015-16, Bonds worth Rs 99,541 crore were floated by the participating States to clear 50 per cent of the outstanding debt of states and outstanding CPSU dues in Jharkhand and Jammu & Kashmir. Further, DISCOM bonds worth Rs 11,524 crore were floated. In the year 2016-17, bonds worth Rs 48,391 crore have been floated by Rajasthan, Uttar Pradesh and Punjab.

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