Jharkhand likely to be first state to be part of Ujjawal Discom Assurance Yojana

NEW DELHI: The Jharkhand government has communicated its interest to be part of the Centre’s recently-launched Ujjawal Discom Assurance Yojana (UDAY), which aims to find a solution to the financial mess in power distribution, a senior government official said.

“The state has sent us a letter showing its interest in participation of the debt-recast scheme. We have now to negotiate with the state the targets and timelines for reducing financial and transmission losses. Once the state and the power ministry agree upon the terms, an MoU will be signed,” said the official, who did not wish to be identified.

He said more states are likely to take up the proposals to their cabinets to be part of the scheme. Under UDAY, approved by the Union Cabinet on November 5, states will take over 75per cent of debt of their distribution companies over two years to reduce the interest cost on debt to about 9per cent from 15per cent.