UDAY(Ujwal DISCOM Assurance Yojana) Scheme – Status Updates

One of the major challenges faced by the Indian Power sector relates to the financial health of the Distribution Companies(DISCOMS). At the end of the Financial Year 2014-15(March 2015), DISCOMS in India had accumulated losses of about Rs. 3.8 Lakh Crores and outstanding debt of about Rs. 4.3 Lakh Crores. The poor financial strength of the discoms have led to power shortages, inability to provide achieve 100% electrification and inability to increase power generation.

UDAY (Ujwal DISCOM Assurance Yojana) was launched in November 2015 with the objective of  financial turnaround of Power Distribution Companies. States signing up for UDAY scheme will get assistance from the Ministry of Power in several ways like

  • Reduction in power cost through better coal linkages, coal swaps and others
  • Reduced borrowing costs
  • Grant of additional/priority funding through Deendayal Upadhyaya Gram Jyoti Yojana (DDUGJY),Integrated Power Development Scheme (IPDS), Power Sector Development Fund (PSDF) or other such schemes of Ministry of Power and Ministry of New and Renewable Energy.

All the support from the central government would be based on achieving operational milestones. Details of the scheme can be downloaded here.

The list of all the states that have joined UDAY scheme are as follows.

  State Month of Joining
1 Andhra Pradesh June 2016
2 Arunachal Pradesh March 2017
3 Assam January 2017
4 Bihar  February 2016
5 Chhattisgarh January 2016
6 Goa June 2016
7 Gujarat February 2016
8 Jammu & Kashmir March 2016
9 Jharkhand January 2016
10 Haryana March 2016
11 Himachal Pradesh October 2016
12 Karnataka June 2016
13 Kerala March 2017
14 Madhya Pradesh August 2016
15 Maharashtra October 2016
16 Manipur July 2016
17 Meghalaya
18 Mizoram April 2017
19 Punjab March 2016
20 Puducherry August 2016
21 Rajasthan January 2016
22 Sikkim February 2017
23 Tamilnadu January 2017
24 Telangana January 2017
25 Tripura March 2017
26 Uttar Pradesh January 2016
27 Uttrakhand April 2016

The operational performance updates of these states can be accessed here.