States get more time to join UDAY
State governments are now allowed to subscribe to Ujjwal Discom Assurance Yojana (UDAY), this financial year too. The Cabinet approved the extension of UDAY, which earlier had a deadline of March 2016. States that had signed up for the scheme were supposed to take over 50 per cent of the debt of the respective distribution company (discom) by 2015-16 and the balance in 2016-17. Those joining now can issue bonds against 50 per cent debt this year and carry forward 25 per cent debt to 2017-18. With the timeline extended, the states would take over 75 per cent of the discoms´ debts as on September 30, 2015, by March 31, 2017, by issuing bonds, said the government.
Contact: Ministry of Power