UDAY covers 97% of discom debt: Centre:

UDAY covers 97% of discom debt: Centre:


  •  Ujwal DISCOM Assurance Yojana (UDAY) is the financial turnaround and revival package for electricity distribution companies of India (DISCOMs) initiated by the Government of India with the intent to find a permanent solution to the financial mess that the power distribution is in

Why in News

  • Recently, government announced that  97% of the total outstanding debt of all state power distribution companies (discoms) has been covered under the Ujwal DISCOM Assurance Yojana (UDAY)
  • So far, 86% of the restructurable debt has been revamped under the scheme

Some Relevant Facts

  • In 2015, the total debt of all state-owned discoms was 3.95 lakh crore
  •  The 26 states and 1 UT which have joined the UDAY scheme account for total outstanding debt of 3.82 lakh crore.
  • Hence, about 97% of the total outstanding debt of all State discoms has been covered under UDAY
  • The national average of aggregate technical and commercial (AT&C) losses (from all UDAY states) stood at 20.2% in FY17
  •  Also the difference between the average cost of supply (ACS) and the average revenue realized (ARR) had come down in the last year.
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