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(General Awareness)
UDAY (Ujwal DISCOM Assurance Yojana)
(Financial Turnaround of Power Distribution Companies)
Salient Features of UDAY
States shall take over 75% of DISCOM debt as on 30 September 2015 over two years - 50%
of DISCOM debt shall be taken over in 2015-16 and 25% in 2016-17.
Government of India will not include the debt taken over by the States as per the above
scheme in the calculation of fiscal deficit of respective States in the financial years 2015-16
and 2016-17.
States will issue non-SLR including SDL bonds in the market or directly to the respective
banks / Financial Institutions (FIs) holding the DISCOM debt to the appropriate extent
DISCOM debt not taken over by the State shall be converted by the Banks / FIs into loans or
bonds with interest rate not more than the plus 0.1%. bank’s base rate
Alternately, this debt may be fully or partly issued by the DISCOM as State guaranteed
DISCOM bonds at the prevailing market rates which shall be equal to or less than bank base
rate plus 0.1%.
State DISCOMs will comply with the Renewable Purchase Obligation (RPO) outstanding
since 1st April, 2012, within a period to be decided in consultation with Ministry of Power.
States accepting UDAY and performing as per operational milestones will be given additional
/ priority funding through Deendayal Upadhyaya Gram Jyoti Yojana (DDUGJY),Integrated
Power Development Scheme (IPDS), Power Sector Development Fund (PSDF) or other such
schemes of Ministry of Power and Ministry of New and Renewable Energy.
Such States shall also be supported with additional coal at notified prices and, in case of
availability through higher capacity utilization, low cost power from NTPC and other Central
Public Sector Undertakings (CPSUs).
UDAY is optional for all States. However, States are encouraged to take the benefit at the
earliest as benefits are dependent on the performance.
Andhra Pradesh was the 1st State to opt for UDAY scheme.
Date of Release -21-Jan-16 SUBJECT: GA www.bankersguru.org
(General Awareness)
UDAY (Ujwal DISCOM Assurance Yojana)
(Financial Turnaround of Power Distribution Companies)
Salient Features of UDAY
States shall take over 75% of DISCOM debt as on 30 September 2015 over two years - 50%
of DISCOM debt shall be taken over in 2015-16 and 25% in 2016-17.
Government of India will not include the debt taken over by the States as per the above
scheme in the calculation of fiscal deficit of respective States in the financial years 2015-16
and 2016-17.
States will issue non-SLR including SDL bonds in the market or directly to the respective
banks / Financial Institutions (FIs) holding the DISCOM debt to the appropriate extent
DISCOM debt not taken over by the State shall be converted by the Banks / FIs into loans or
bonds with interest rate not more than the plus 0.1%. bank’s base rate
Alternately, this debt may be fully or partly issued by the DISCOM as State guaranteed
DISCOM bonds at the prevailing market rates which shall be equal to or less than bank base
rate plus 0.1%.
State DISCOMs will comply with the Renewable Purchase Obligation (RPO) outstanding
since 1st April, 2012, within a period to be decided in consultation with Ministry of Power.
States accepting UDAY and performing as per operational milestones will be given additional
/ priority funding through Deendayal Upadhyaya Gram Jyoti Yojana (DDUGJY),Integrated
Power Development Scheme (IPDS), Power Sector Development Fund (PSDF) or other such
schemes of Ministry of Power and Ministry of New and Renewable Energy.
Such States shall also be supported with additional coal at notified prices and, in case of
availability through higher capacity utilization, low cost power from NTPC and other Central
Public Sector Undertakings (CPSUs).
UDAY is optional for all States. However, States are encouraged to take the benefit at the
earliest as benefits are dependent on the performance.
Andhra Pradesh was the 1st State to opt for UDAY scheme.
Date of Release -21-Jan-16 SUBJECT: GA www.bankersguru.org
