Cabinet approves extension of timeline for states to join Uday Scheme
The Union Cabinet led by Prime Minister Narendra Modi approved the extension of timeline for taking over 50% of Outstanding Debt of DISCOMs from March 31, 2016- March 31, 2017 under UDAY (Ujjwal DISCOM Assurance Yojana).
UDAY is a scheme for operational and financial turnaround of DISCOMs.The decision would allow States, which could not participate in the scheme UDAY earlier to join the Scheme.
Under UDAY, so far 19 States have already given their consent to join the scheme, out of which 10 States, viz. Rajasthan, Uttar Pradesh, Chattisgarh, Jharkhand, Punjab, Bihar, Haryana, Gujarat, Uttarakhand and Jammu & Kashmir have already signed MOUs with the Central Government.
UDAY provides for the financial turnaround and revival of Power Distribution companies (DISCOMs), and importantly also ensures a sustainable permanent solution to this long standing problem.