Deadline of UDAY Scheme Extended [ Current Affairs ]
The Union Cabinet has accepted suggestion of extending the deadline of execution time of the Ujjwal Discom Assurance Yojana (UDAY) up to March 31, 2017 and with this decision75 % of ailing DISCOM (Power Distribution companies) debt take over by states on 30th September, 2015 by 31st March, 2017 by distributing Bonds.
- It is measured as an important step in grasping the vision of showing 24X7 reasonable and environment friendly Power for All.
- These involvements will also lesser the attention weight of debt and permit states, which could not join UDAY previously to put DISCOMs improvements on enhanced path.
About Ujjwal Discom Assurance Yojana (UDAY)
- The main objective of the UDAY scheme is to carrying ill power discoms to a state of operational productivity, with state governments enchanting over up to 75 % of their individual debt and supplying sovereign bonds to pay back the investors.
- It is the most inclusive power sector which ever accepted modification.
- It have ability to conceive lastingly resolve all DISCOM problems in the past, present and future.
- The scheme is for the effective and financial improvement of DISCOMs, which are the weakest link in the power value chain.
- With this it offers a clear roadmap and occasion to DISCOMs to develop profitable till 2019.
- Power is a synchronized subject and needs the active participation of the States; several States/Union Territories have joined or agreed to join the scheme.
- Under this scheme the improvement of DISCOMs will done through
- Improving operational efficiencies of DISCOMs
- Reduction in the cost of power
- Enforcing financial discipline on DISCOMs through alignment with State finances
- Previously around 19 states was agreed to join the scheme, out of which 10 states have signed MoUs with the Union Government.
- Published on: June 24, 2016