Madhya Pradesh, Tamil Nadu and Telangana will issue UDAY bonds on a private placement basis to raise a total of Rs 18,107.93 crore. The scheme has been introduced by the government to bail out loss making power utilities. Break-up wise, Tamil Nadu will offer securities worth Rs 8,815 crore under the Ujjwal Discom Assurance Yojana (UDAY) scheme; Madhya Pradesh Rs 7,360 crore and Telangana Rs 1,932.93 crore. Eligible market participants need to place their bids between 10:30 AM to 12 noon on March 21, Reserve Bank said in a release. The securities are to be allotted on March 22. A participant will have to place minimum bid of Rs 100 crore, RBI said. RBI reserves the right to accept or reject any/all bids at its sole discretion. Power Ministry in November 2015 had issued memorandum on UDAY for operational and financial turnaround of power distribution companies (discoms).
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