Rajasthan Government inks MoU to join UDAY Scheme

Rajasthan Government along with its power distribution companies (DISCOMS) has signed a MoU to join UDAY (Ujwal Discom Assurance Yojana) Scheme.
State DISCOMS part of this MoU are Jaipur Vidyut Vitran Nigam Limited (JVNL), Jodhpur Vidyut Vitran Nigam Limited (JVVNL) and Ajmer Vidyut Vitran Nigam Limited (AVNL).
Key facts

• With this, Rajasthan became third state to sign the MoU under UDAY scheme after Jharkhand and Chhattisgarh.
• By joining the UDAY Scheme, discoms in Rajasthan will be able to overcome permanent and sustainable solution for their debt-ridden utilities and achieve financial stability and growth.
• Presently, discoms in Rajasthan have a total debt of 80,500 crore rupees which accounts for 18.7 per cent of the country’s total discom debt of 4.3 lakh crore rupees.

About Ujwal DISCOM Assurance Yojna (UDAY)

• UDAY Scheme has been launched by Union Ministry of Power for financial restructuring of debt of power distribution companies.
• It aims for financial revival and turnaround of Power Distribution companies (DISCOMs) and also ensures a sustainable permanent solution to the problem.
• By becoming part of it, states power DISCOMs can convert their debt into state bonds as well as roll out number of measures to improve efficiency at power plants.
• It seeks to make DISCOMs financially and operationally healthy so they can supply adequate power at affordable rates and play important role in Union Government’s ambition of meeting target of 100% Village electrification and 24X7 Power For All.

Month: Current Affairs - January, 2016