UDAY helps reduce subsidy dependence of power discoms

Rajasthan, Haryana, Andhra, Chhattisgarh, MP and Bihar have reduced their subsidy

The Centre’s power distribution reforms scheme, Ujwal Discom Assurance Yojana (UDAY), has helped discoms reduce their subsidy dependence on state governments owing to improved liquidity position, a report released by the Rural Electrification Corporation (REC) said on Wednesday.

State-owned power distribution companies of Rajasthan, Haryana, Andhra Pradesh, Chhattisgarh, Madhya Pradesh and Bihar have reduced their subsidy, booked as percentage of the revenue, in the range of 5-10 per cent in the current financial year, said REC, a listed navratna public sector enterprise under the ministry of power that monitors UDAY performance.

States like Andhra Pradesh, Bihar, Assam, Haryana and Jharkhand reduced power