Huge hopes pinned on UDAY to revive state electricity retailers from their bankruptcy

Narendra Modi government’s new scheme to rescue bankrupt state electricity retailers is receiving praises.

"It (Ujjwal Discom Assurance Yojana (UDAY)) will help in a big way in wiping out the losses of discoms by 2019," Union Power Minister Piyush Goyal said.

The government had said yesterday that state governments, which own the discoms, can take over 75 per cent of their debt as of September 30 and pay back lenders by selling bonds.

For the remaining 25 per cent, discoms will issue bonds.

The central government will also ease rules to allow states participating in the scheme to borrow more and help with the additional burden.

Meanwhile, P K Pujari, Secretary, Power, said state specific issues are being addressed in meeting the target announced by the Prime Minister in his Independence Day address for electrifying the remaining 18,500 un-electrified villages of the country in the next 1,000 days.

Secretary, MNRE, Upendra Tripathy said Renewable Energy is not electricity alone but a package of health and environment.

(Image credits: Indiatimes)