Karnataka, Goa join UDAY scheme

KARNATAKA and Goa have agreed to join the UDAY scheme meant for the revival of discoms that may result in a total gain of about crore to both the states over next 3 years. “Karnataka signed UDAY MoU resulting in gains of around crore over the next 3 years,” power minister Piyush Goyal tweeted, adding: “Goa signed UDAY MOU in presence of @goaCM. State stands to gain around crore over the next 3 years through UDAY reforms.” R4,570 R4,300 R270

KARNATAKA and Goa have signed an agreement to join the UDAY scheme meant for the revival of discoms. It may result in a total gain of about R4,570 crore to both the states over next three years.

“Karnataka signed UDAY MoU resulting in gains of around R4,300 crore over the next 3 years,” power minister Piyush Goyal said in a tweet.

The minister also said: “Goa signed UDAY MoU in presence of @goaCM. State stands to gain around R270 crore over the next 3 years through UDAY reforms.”

Earlier in the month, the minister had said that Assam is also keen to join the Ujwal Discom Assurance Yojana (UDAY) scheme, which is aimed at reviving the debt-laden power distribution companies.

The other four states that recently went to assembly polls — Kerala, Tamil Nadu, West Bengal and Puducherry — had also evinced interest to join the scheme once the elections were over, the minister had said. Karnataka signed the Ujwal Discom Assurance Yojana MoU, resulting in gains of around R4,300 crore over the next three years, power minister Piyush Goyal said in a tweet

The government had earlier said that the Power Ministry would soon approach the Cabinet to seek approval for enabling private sector electricity distribution companies (discoms) to get operational benefits of the Ujwal Discom Assurance Yojana (UDAY).

Under this scheme for reviving financially stressed electricity distribution utilities, state governments takeover 75% of the debt with the electricity distribution utilities. The remaining debt is issued as discom bonds, backed by state governments.