Kerala, Tripura and Arunachal Pradesh are all set to join the government’s UDAY scheme, taking the number of states joining the bandwagon to 25. UDAY was launched by the government in November 2015 to ensure financial stability for debt-ridden distribution utilities. It involves several measures to support reform initiatives of states and discoms including demand side management, increased power supply in areas where AT&C losses are reduced, measures to reduce cost of power generation, reduction of interest costs and exemption of debt-taken over from borrowing limits under the Fiscal Responsibility and Budget Management (FRBM) Act. So far, 92 per cent of the total debt of state discoms has been covered under UDAY. This includes Andhra Pradesh, Assam, Bihar, Chhattisgarh, Goa, Gujarat, Jammu & Kashmir, Jharkhand, Haryana, Himachal Pradesh, Karnataka, Madhya Pradesh, Maharashtra, Manipur, Punjab, Rajasthan, Sikkim, Telangana, Tamil Nadu, Uttar Pradesh, Uttarakhand and union territory of Puducherry
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