The Central Government of Tamil Nadu is going to issue Rs 14,000 crore bonds on under UDAY Scheme (Ujjwal Discom Assurance Yojana Scheme) on upcoming Monday (20 Feb 2017). UDAY is a bailout plan chalked out for the loss-making power distribution companies.
The Reserve Bank has released a notification yesterday (15 Feb 2017). The notification states that the Tamil Nadu government proposes to issue special securities of Rs 14,000 crore, under the Ujjwal Discom Assurance Yojana Scheme (UDAY).
The eligible applicants can subscribe to these special bonds on February 20, 2017 between 10.30 AM to 12 Noon.
In November, the UDAY scheme operational had been made by the Power Ministry for the financial turnaround of power distributition companies (discoms).
RBI said that the allotment of securities and settlement will take place on February 22, 2017.
The interest on bonds will be corresponding to yield on government securities at minimum bid size of Rs 100 crore as at the close of February 17.
RBI said that it will have the sole discretion to accept or reject any/all bids. Recentally, Rajasthan government had informed about issuing bonds worth Rs 1,564 crore under UDAY.
Under UDAY (Ujjwal Discom Assurance Yojna Scheme) Scheme, the bonds of Rs 98,959.97 crore had been floated in eight states i.e Uttar Pradesh, Rajasthan, Chhattisgarh, Punjab, Jammu and Kashmir, Bihar, Jharkhand, Haryana in the year 2015-16.
News Source: http://www.newindianexpress.com/topic/Ujjwal_Discom_Assurance_Yojna_Scheme