States issue bonds worth Rs 1 lakh cr to tackle discom debt

Eight states, including Rajasthan, Uttar Pradesh and Bihar, issued bonds worth almost Rs 1 lakh crore in 2015-16 under the UDAY scheme meant for revival of debt-ridden power distribution companies.
The discoms have accumulated debt of Rs 4.37 lakh crore. Till date, as many as 10 states have formally signed up for the scheme.
Under the programme, the states will issue bonds to take on 75 per cent of the debt of these discoms and the remaining credit will be paid through state-guaranteed bonds issued by discoms.
"Another target achieved: UDAY bonds worth almost Rs 1 lakh crore issued in the last financial year helping achieve 24X7 affordable power for all," Power Minister Piyush Goyal today said.

The tentative data collected from the states show that bonds worth Rs 99,541 crore were issued by states under the UDAY scheme launched by the Centre in November last year for revival of debt-stressed distribution companies, a source said.
Rajasthan has issued bonds worth Rs 37,350 crore followed by Uttar Pradesh at Rs 24,332 crore, Haryana at Rs 17,300 crore and Punjab Rs 9,860 crore.

Jharkhand issued bonds worth Rs 6,136 crore while Jammu & Kashmir and Bihar issued securities worth Rs 2,140 crore and Rs 1,553 crore, respectively.
Chhattisgarh has issued bonds worth Rs 870 crore under the scheme to pare debt of its discoms.

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Meanwhile, Goyal lauded the efforts of the state-run PowerGrid for commissioning transmission projects worth Rs 30,300 crore during the last financial year registering a growth of 39 per cent growth year on year.
"Congratulations to PowerGrid for commissioning transmission projects worth Rs 30,300 crore in 2015-16, an annual growth of 39 per cent," Goyal tweeted later in the day.