Andhra Pradesh government to issue securities worth Rs 8,256 crore under UDAY

The Andhra Pradesh government proposes to issue special securities worth Rs 8,256.01 crore under the Ujjwal Discom Assurance Yojna Scheme (UDAY).

The securities will have a face value of Rs 100 issued in equal strips with a maturity at the end of 10th, 11th, 12th, 13th, 14th and 15th year, the RBI said in a statement.

"An investor will be required to purchase entire structure and the bid amount will be uniformly distributed across all tenors," it said, adding the minimum size of the bid will be Rs 100 crore.

The Reserve Bank said allotment of securities and settlement will take place on October 18.

Union Power Minister had launched the UDAY Scheme last year for operational and financial turnaround of power distribution companies (DISCOMs).

So far 17 states/UTs have signed UDAY.

The combined discom debt, including central PSU dues, that would be restructured in respect of these states is around Rs 2.57 lakh crore, which is around 68 per cent of the total outstanding discom debt as on September 30, 2015.