Rajasthan becomes part of UDAY, to get benefit up to Rs 21,000 crore

NEW DELHI: Rajasthan has become part of the Centre's distribution debt recast scheme and is expected to receive benefits to the tune of Rs 21,000 crore in the next three years, Power Minister Piyush Goyal said on Wednesday.

"The debt got accumulated due to gross mismanagement over five years of Ashok Gehlot-led Congress government. The discoms were run to the ground," Goyal said.

Rajasthan’s discoms have debt of Rs 80,000 crore and are expected to save Rs 7,000 crore pa interest cost as the state government takes over 75% of the debt as part of the Ujwal Discom Assurance Yojna (Uday).

Rajasthan is the third state to become part of UDAY, after Jharkhand and Chhattisgarh.

The three power distribution companies of Rajasthan- Jaipur Vidyut Vitaran Nigam, Ajmer Vidyut Vitaran Nigam and Jodhpur Vidyut Vitaran Nigam - - have agreed to be part of UDAY.