7 states agree for discom debt recast

NEW DELHI: Seven states have agreed to be a part of the debt recast scheme launched by the Centre last month.

Andhra Pradesh, Jharkhand, and Rajasthan, Punjab, Jammu & Kashmir Himachal Pradesh, & Uttarakhand have communicated their in- principle approval to the Ministry of Power to join Ujjawal Discom Assurance Yojana ( UDAY), an official statement said.

Under UDAY, approved by the Union Cabinet on November 5, states shall take over 75% of debt of their distribution companies over two years to reduce the interest cost on debt to around 9% from 15%.