• Assam’s entry in UDAY club to boost its power health; Estimated benefit of Rs 1,663 cr

    Assam joined the UDAY (Ujwal DISCOM Assurance Yojana) club on Wednesday, signing an MoU with the power ministry in New Delhi. The state, along with Telangana, have now taken the UDAY tally to 20. This will enable an operational and financial turnaround of the debt-ridden electricity distribution company, resulting in an estimated overall net benefit of Rs 1,663 crore.

    UDAY is a scheme to revive loss-making DISCOMS (power distribution companies) and make them vibrant and efficient, giving them the opportunity to break even in two to three years. This is done through four initiatives – improving operational efficiency of DISCOMS, reduction of power costs, reduction in interests costs and enforcing financial discipline on DISCOMS by aligning their operations with state finances.

    The state will take over Rs 928 crore of the total Rs 1,510-crore DISCOM debt, which is 75% of the debt outstanding as on September, 2015. As part of the scheme, the Centre will not include the debt taken over by the states in the calculation of fiscal deficit of respective states in the financial years of 2015-16 and 2016-17.

    A spokesperson also said this would amount to annual savings of Rs 37 crore in interest costs to the state. The interest cost on future borrowings is also expected to come down, leading to savings of around Rs 30-40 crore for all UDAY states. Everson Griffen Womens Jersey

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