Telangana joins UDAY scheme, discoms to get Rs 890 cr interest relief

Under UDAY scheme, state govt will take over 75% of the discoms' total debt of Rs 11,897 cr

Telangana state has joined the Ujwal Discom Assurance Yojana (UDAY) scheme by signing an MoU with the Centre on Wednesday. Chief Minister K Chandrasekhar Rao said the move will provide a relief from interest burden to an extent of Rs 890 crore a year to the two discoms in the state.

Under UDAY scheme, the state government will take over 75 per cent of the discoms' total debt of Rs 11,897 crore and the remaining Rs 2,974 crore will be restructured with favourable repayment terms.

Also the debt portion taken over by the government will not be taken into account