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UDAY states see Rs 11,989-cr drop in interest cost

UDAY aims to reduce the interest burden, cost of power and energy losses

Press Trust of India  |  New Delhi 

UDAY states see Rs 11,989-cr drop in interest cost

The cost of participating in Ujwal Assurance Yojana (UDAY) scheme has come down by around Rs 11,989 crore for April-December of 2016-17 over the year-ago period.

"As per the information available, the cost of participating in has reduced by Rs 11,989 crore, approximately for the first nine months of the current financial year compared to the financial year (2015-16)," Power Minister Piyush Goyal said in a reply to the Rajya Sabha.

So, the question of -- the scheme designed to nurse debt-laden electricity distribution companies back to health -- opening up another window of fresh debts does not arise, he added.

Ujwal Assurance Yojana (UDAY) aims to reduce the burden, and losses in state-owned distribution utilities with an objective of achieving their sustainable operational and financial turnaround.

In a separate reply to the House, the minister said so far 22 and one Union Territory (UT) are on board as far as is concerned.

"Out of Rs 3,75,430 crore debt of state-owned power distribution utilities, as existing on March 31, 2015, account for Rs 3,56,152 crore," the minister said.

First Published: Mon, March 20 2017. 17:57 IST