UDAY (Ujwal Discom Assurance Yojana)

04th Jan, 2015

The Scheme – UDAY (Ujwal Discom Assurance Yojana) has been launched to improve financial and operational efficiencies of power distribution companies (DISCOMs). 

It envisages to reduce interest burden, cost of power and AT&C losses. Consequently, DISCOM would become sustainable to supply adequate and reliable power enabling 24x7 power supply. 

The scheme provides that States would take over 75% debt of Discoms, as on 30th September, 2015 in two years. 

UDAY is different from earlier restructuring schemes in several ways including flexibility of keeping debt taken over outside fiscal deficit limit, reduction in cost of power and a series of time bound interventions for improving operational efficiency. UDAY provides for measures that will reduce the cost of power generation, which would ultimately benefit consumers.