UDAY (Ujwal DISCOM Assurance Yojana)

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UDAY is  a ambitious scheme launched by Hon’ble Prime Minister’s  with a vision of affordable and accessible 24×7 Power for All. It is another big step made in the Power sector over the past one and a half years,  This scheme includes new ways  for fuel supply (highest coal production growth in over 2 decades), to generation (highest ever capacity addition), transmission (highest ever increase in transmission lines) and consumption (over 2.3 crore LED bulbs distributed).

Ujwal DISCOM Assurance Yojana  scheme

-was announced by Shri Piyuh Goyal, Minister of State (IC) for Power, Coal & New and Renewable Energy in November 2015 ll now 17 states have joined this scheme with Maharastra becomes the 17th state to launch. Recently 4 other states have joined the scheme. The 4 states are Uttar Pradesh, Bihar, Odisha and Maharashtra thereby making the total of 15 states to have joined the scheme

Vison Of UDAY Scheme

  • States shall take over 75% of DISCOM debt as on 30 September 2015 over two years – 50% of DISCOM debt shall be taken over in 2015-16 and 25% in 2016-17.
  • Government of India will not include the debt taken over by the States as per the above scheme in the calculation of fiscal deficit of respective States in the financial years 2015-16 and 2016-17.
  • States will issue non-SLR including SDL bonds in the market or directly to the respective banks / Financial Institutions (FIs) holding the DISCOM debt to the appropriate extent.
  • DISCOM debt not taken over by the State shall be converted by the Banks / FIs into loans or bonds with interest rate not more than the bank’s base rate plus 0.1%. Alternately, this debt may be fully or partly issued by the DISCOM as State guaranteed DISCOM bonds at the prevailing market rates which shall be equal to or less than bank base rate plus 0.1%.
  • States shall take over the future losses of DISCOMs in a graded manner.
  • State DISCOMs will comply with the Renewable Purchase Obligation (RPO) outstanding since 1 April 2012, within a period to be decided in consultation with Ministry of Power.
  • States accepting UDAY and performing as per operational milestones will be given additional / priority funding through Deendayal Upadhyaya Gram Jyoti Yojana (DDUGJY),Integrated Power Development Scheme (IPDS), Power Sector Development Fund (PSDF) or other such schemes of Ministry of Power and Ministry of New and Renewable Energy.
  • Such States shall also be supported with additional coal at notified prices and, in case of availability through higher capacity utilization, low cost power from NTPC and other Central Public Sector Undertakings (CPSUs).
  • States not meeting operational milestones will be liable to forfeit their claim on IPDS and DDUGJY grants.

Objectives of Uday

  • Financial Turnaround
  • Operational improvement
  • Reduction of cost of generation of power
  • Development of Renewable Energy
  • Energy efficiency & conservation


Official website of Uday

Official website –  www.uday.gov.in


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