Gujarat joins UDAY scheme for debt-laden discoms

Gujarat has formally joined the Centre's 'UDAY' scheme for revival of debt-laden discoms, becoming the 10th state so far to join the programme.
"Compliments to CM of Gujarat Smt @anandibenpatel on Gujarat becoming the 10th state to join UDAY (Ujwal DISCOM Assurance Yojana)," Power and Coal Minister Piyush Goyal said in a tweet.
"With number of states in UDAY reaching double digits, we are progressing towards realising Hon'ble PM @Narendramodi's vision of 24X7 power," he tweeted.
He further tweeted that with UDAY, states can reduce interest cost, improve operational efficiency and lower cost of power, to ensure power for all.

Other states that communicated their in-principle approval to the Power Ministry for joining the UDAY scheme are: Chhattisgarh, Andhra Pradesh, Jharkhand, Rajasthan, Punjab, Jammu & Kashmir, Himachal Pradesh, and Uttarakhand.
Goyal further tweeted that all states have expressed strong interest for joining 'UDAY' "and are at various stages of getting internal approvals."

"We remain confident of all the States joining UDAY and together creating an Ujwal Bharat," he said in another tweet.
The scheme is optional and gets operationalised by signing a pact between states, state discoms and the Centre.
UDAY aims at reviving ailing state electricity boards and operational efficiencies of power distribution companies. It envisages on reducing interest burden, cost of power and AT&C losses.

Consequently, the discoms will become sustainable to provide adequate and reliable power enabling 24x7 power supply. The scheme provides that states would take over 75 per cent debt of discoms, as on September 30 in two years.