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News Brief | April 2016

No hike in tariff due to doubled coal cess

According to Union Power Minister Piyush Goyal, the budgetary announcement of doubling coal cess will not lead to hike in power tariffs since power distribution companies (discoms) will benefit from Ujjwal Discom Assurance Yojna (UDAY). It is estimated that discoms will save around `1.8 lakh crore in the next three years under the UDAY scheme.
UDAY is aimed at reviving debt-ridden discoms by letting states take 75 per cent of the debt and issue bonds to pare loans, while the discoms will issue state guaranteed bonds for remaining loans to repay the debt.
Contact: Ministry of Coal
Tel: 011-23070522
Website: http://coal.nic.in/
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