Andhra Pradesh First State To Join Discom Revival Scheme UDAY

08 December, Hyderabad

Andhra Pradesh has become the first state in the country to join the Centre’s scheme for revival of debt-stressed power distribution companies after the state gave in-principle nod to the Power Ministry for joining Ujwal Discom Assurance Yojana – UDAY.

It envisages reducing the interest burden, cost of power, and aggregate technical and commercial losses. Consequently, distribution companies would become sustainable to supply adequate and reliable power, enabling 24×7 power supplies.

UDAY has in-built incentives encouraging State governments to voluntarily restructure their debts.

These incentives include taking over of DISCOM debt by States outside the fiscal deficit limits; reduction in the cost of power through various measures such as coal linkage rationalisation, liberal coal swaps, coal price rationalisation, correction in coal grade slippage, allocation of coal linkages at notified prices, priority/additional funding through schemes of Ministry of Power and Ministry of New and Renewable Energy and reduction in interest burden.