Maharashtra: 17th State to Join UDAY Scheme (Download PDF)

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Maharashtra agreed to join Central Government’s Ujwal Discom Assurance Yojna (UDAY) scheme. It became the 17th state to join UDAY. This will help Maharashtra recover Rs 9,725 crore in low-cost funds, transmission losses, energy efficiency, and coal modifications.

  • In 2016 Maharashtra will take more than 75% of the discom’s non-capex debt of around 6,600 crore rupees.
  • Convert the debt into bonds re-priced at low rates reducing the interest burden on Maharashtra by up to 595 crore rupees.

About Ujjwal Discom Assurance Yojana (UDAY) - Important

  • Support DISCOMs (distribution companies) with state governments putting up to 75 % of their individual debt and supplying sovereign bonds to pay back the investors.
  • This is to support revival of power sector
  • It has the potential to forever resolve all DISCOM problems
  • Effective and immediate financial improvement of DISCOMs, which are the weakest link in the power value chain.
  • Offers a clear roadmap to make DISCOMs profitable by 2019.
  • Power is in the shared list and needs active participation of the States and Center; several States and Union Territories have joined or agreed to join the scheme.
  • Under this scheme the improvement of DISCOMs will be done through
  1. Improving operational efficiencies
  2. Reduction in the cost of power
  3. Enforcing financial discipline on DISCOMs through alignment with State finances
  • Previously 16 states agreed to join the scheme, of which 10 have signed MoUs with the Union Government.
Location of Ujjwal Discom Assurance Yojana

Location of Ujjwal Discom Assurance Yojana

Location of Ujjwal Discom Assurance Yojana

  1. Andhra Pradesh
  2. Punjab
  3. Jharkhand
  4. Himachal Pradesh
  5. Jammu & Kashmir
  6. Rajasthan
  7. Uttarakhand
  8. Haryana
  9. Gujarat
  10. Madhya Pradesh
  11. Chhattisgarh
  12. Bihar
  13. Uttar Pradesh
  14. Odisha
  15. Maharashtra

- Published/Last Modified on: October 10, 2016

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