UDAY Yojana is a scheme launched by the central government to provide financial turnaround and revival of power distribution companies.
Key Features
- Aims to reduce losses and improve finances of power distribution companies
- Provides states with opportunity to take over 75% debt of these companies
- Links discoms performance to state finances as incentive to reform
- Focuses on 4 major initiatives - improving operational efficiencies, reducing cost of power, reducing interest cost and enforcing financial discipline
Benefits
Key benefits of the UDAY Yojana include:
- Financial turnaround of power distribution companies
- 24x7 affordable and quality power for all
- Lower interest costs and better access to finance for discoms
- Increased sustainability through operational discipline
Eligibility for UDAY Yojana
The UDAY Yojana is aimed at state owned power distribution companies to help improve their financial situation. All states and union territories can participate.
Application Process
States can apply to join the UDAY scheme by submitting their joining applications through the online portal uday.gov.in. The MoUs contain the turnaround plans with commitments from states and discoms.
Conclusion: The UDAY Yojana aims to bring reforms and relief for the power sector through financial turnaround of discoms. This will ensure affordable and quality electricity access for all.
FAQ:
Q1: What is the full form of UDAY?
A1: UDAY stands for Ujwal DISCOM Assurance Yojana.
Q2: Who launched the UDAY Yojana?
A2: The UDAY Yojana was launched by the Government of India in November 2015.
Q3: What is the main objective of UDAY?
A3: The main objective is to improve operational and financial efficiency of power distribution companies.
Q4: What are the benefits of UDAY?
A4: Benefits include financial turnaround of discoms, affordable 24x7 power, sustainability through reforms.
Q5: How can states join UDAY?
A5: States have to submit the application and sign MoU on uday.gov.in portal to join.
Q6: Who bears the debt under UDAY?
A6: States take over 75% of discom debt under UDAY in a graded manner.
