Ujwal DISCOM Assurance Yojana (UDAY)
- It is to provide financial and operational turnaround of power distribution companies and aims at long term affordable and accessible 24×7 power supply to all.
- It has target of making all DISCOMs profitable by 2018-19 through four initiatives such as Improving operational efficiencies of Discoms, Reduction of cost of power, Reduction in interest cost of Discoms, Enforcing financial discipline on DISCOMs through alignment with state finances.
- Under this programme, States shall take over 75% of DISCOM debt over two years i.e 50% of DISCOM debt shall be taken over in 2015-16 and 25% in 2016-17.
- Government of India will not include the debt taken over by the states as per the above scheme in the calculation of fiscal deficit of respective states in the financial years 2015- 16 and 2016-17.
- States will issue non-SLR including SDL bonds in the market or directly to the respective banks / financial institutions (FIs) holding the DISCOM debt to the appropriate extent.
- DISCOM debt not taken over by the state shall be converted by the banks / FIs into loans or bonds.
- UDAY is the financial turnaround and revival package for electricity distribution companies of India (DISCOMs)