Andhra Pradesh joins UDAY to derive Rs 4,400 crore benefits

NEW DELHI: Andhra Pradesh has joined the Centre's debt revival scheme for state power distribution companies.

An overall net benefit of approximately Rs 4,400 crore will accrue to the state by opting to participate in Ujwal Discom Assurance Yojana or Uday, by way of cheaper funds, reduction in AT&C and transmission losses, interventions in energy efficiency, coal reforms, etc. during the period of turnaround, an official statement said.

The state has committed to take over discoms’ debt of Rs 11,000 crore during the current year, which will reduce the interest burden by Rs 330 crore per annum.

Under Uday, 12 states have signed memorandums of understanding till date. On Friday, Andhra Pradesh signed the MoU as the 13th state to be covered under the scheme.

The combined debt of discoms that will be restructured in respect of these states is about Rs 2.16 lakh crore, which is half of the total outstanding discom debt as on September 30, 2015.