The Indian states of Telangana and Assam became the 19th and 20th signatory states of the Ujwal DISCOM (distribution company) Assurance Yojana (UDAY) program, a government program designed to bring about the financial turnaround of DISCOMs in the country. Telangana is estimated to achieve a net benefit of ~Rs.61.16 billion (~$895.8 million) and Assam a net benefit of ~Rs.16.63 billion (~$243.6 million). A total of 19 states and one union territory have now become UDAY signatories, accounting for ~90 percent of the total debt to be restructured through the program.
On the eve of the launch of UDAY Web Portal & Mobile App, the state governments of Telangana and Assam signed Memorandums of Understanding (MoUs) with the Ministry of Power for operational and financial turnaround of their respective state DISCOMs, stated a government release.
The Minister for Power, Piyush Goyal, hinted that another large state is expected to join the UDAY program by next week.
Mercom has reported in its recently released India Quarterly Market Update that the positive effects of the program on the power sector are yet to be seen. The financial health of DISCOMs has been a primary hurdle for India in scaling its power generation. It is a major reason behind power shortages and cuts, and the lack of power for millions of people.
Image Credit: Ministry of Power – UDAY
Saumy is a senior staff reporter with MercomIndia.com covering business and energy news since 2016. Prior to Mercom, Saumy was a copy editor at Thomson Reuters. Saumy earned his Bachelors Degree in Journalism & Mass Communication from the Manipal Institute of Communication at Manipal University. More articles from Saumy Prateek.