- 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.