UDAY scheme will impact people negatively: Jayalalithaa

Tamil Nadu Chief Minister J.Jayalalithaa on Monday categorically said the central government's Ujwal DISCOM Assurance Yojana (UDAY) scheme will negatively impact the state and its people while benefitting the private power producers and banks.

Addressing an election rally in Virudhachalam in Cuddalore district, she said: "The UDAY scheme is brought so that the state government can take the liabilities of the power distribution companies which then can borrow from banks and buy power."

Jayalalithaa, also the AIADMK general secretary, said at the national level, private power producers have sufficient generation capacity but power cuts are there in many states as the power distribution companies are making loss and not able to service their bank loans.

Since private power generators are not in a position to operate their plants in full capacity they are not able to service their bank loans and their loan accounts has been classified as non-performing assets (NPA) by banks, she said.

Claiming the UDAY scheme was introduced so that the state government can assume the liabilities of the power distribution companies which in turn would enable the latter to borrow from banks to purchase power for distribution, she claimed that the scheme is to benefit the private power producers and the banks and not the people or the state government.

She said under the UDAY scheme, the power tariff has to be revised every three months, which is not acceptable to her.

Jayalalithaa also assured that if she is relected then she would introduce liquor prohibition in the state in phases - first reduction in shop timings; reduction in number of outlets; setting up of de-addiction centres and finally full prohibition.

However she did not give any time frame for this.