Ujwal Discom Assurance Yojana (UDAY)

Ujwal DISCOM Assurance Yojana (UDAY) is the financial turnaround and revival package for electricity distribution companies of India (DISCOMs) initiated by the Government of India with an objective to improve the operational & financial efficiency of the State Power Distribution Companies (DISCOMs).

  • It allows state governments, which own the DISCOMs, to take over 75 percent of their debt as of September 30, 2015, and pay back lenders by selling bonds. DISCOMs are expected to issue bonds for the remaining 25 percent of their debt.
  • Till now 31 states/UTs had joined this scheme Mizoram being the 27th state to join. But later, Lakshadweep joined the scheme on 28 February, 2018, bringing the total of states and Union Territories covered to 32.
  • The scheme had two outcome parameters. The targeted outcome parameter and achievement as reported by State Power Distribution Utilities is as below:

Parameters

Targets

Achievements

Aggregate Technical & Commercial (AT&C) Losses

15%

Reduction in AT&C losses from 23.70% in FY 16 to 20.93% in FY 20 and

Average Cost of Supply (ACS) - Average Revenue Realised (ARR) gap

Zero by March 2019

Reduction of ACS - ARR gap from Re.0.48 per kWh in FY 16 to Re.0.30 per kWh in FY 20.

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