Sixth State to Join Uday Scheme is Bihar [ Current Affairs ]

()

The sixth state to join Union Government’s UDAY (Ujwal Discom Assurance Yojana) Scheme is Bihar for financial rearrangement of debt of power distribution companies. Bihar government, State Power Distribution companies (DISCOMs) and Union Power ministry has signed three-way Memorandum of Understanding (MoU) in this regard.

With this MoU Bihar has become 6th state to join UDAY after

  • Rajasthan,
  • Chhattisgarh,
  • Jharkhand,
  • Uttar Pradesh and
  • Gujarat.

And after Uttar Pradesh second Non-NDA state to join the scheme.

Under the scheme:

  • As of September 2015 from total debt of 3, 110 crore rupees Bihar government will take over 75 % or 2, 332 crore rupees of the state DISCOM.
  • At coupon rates of around 3%, the balance 778 crore rupees remaining debt will be re-priced or issued as state guaranteed DISCOM bonds.
  • The annual saving in interest cost to the tune of around Rs. 117 crore will be leaded by the debt rearrangement of state DISCOMs.
  • With this financial restructuring of debt under this scheme will help Bihar to speedily deliver power about 160.60 lakh households in 1, 152 villages which still without electricity.

- Published on: February 23, 2016