A LOOK AT LIFE AFTER DEBT

LUCKNOW: Under the UDAY that the NDA government has introduced, the states concerned will take over 75% of the discom debt as on September 2015 over two years—50% of their debt will be taken over in 2015-16 and 26% in 2016-17. The state, in order to get funds for the purpose from the Centre, will be required to issue bonds in the market or directly to the respective banks/financial institutions holding the discom debt to the appropriate extent. The proceeds realised from the issue of the bonds will be entirely transferred by the state to discoms which, in turn, will discharge the corresponding amount to banks/financial institutions. The UPPCL holding four discoms have Rs 47,000 crore debt/loan payable to various banks at present. Going by the UDAY provisions, the state government will take over the loan to the extent of Rs 35,000 crore. “UDAY is not much different from the scheme introduced by the UPA government in 2012. But that scheme did not work and neither may the UDAY unless the UPPCL functions as a commercial organisation and the state government stops meddling in its day-to-day affairs,” said UP Rajya Vidyut Abhiyanta Sangh general secretary DC Dixit. He said mindlessly purchasing expensive power from the private companies even when affordable power was available in the market was one of the main reasons for the UPPCL’s mounting losses in the recent years. A senior UPPCL official, however, said the task was difficult but not unachievable. “There are positive signs in many towns where the per unit realization has increased significantly following repeated drives against power theft and we are giving more electricity to all such cities as an incentive,” claimed, he, adding, “If the trend continues, it is not impossible for the UPPCL/discoms to achieve a financial turnaround by 2019 as envisaged under the UDAY.”