ForumIAS announcing GS Foundation Program for UPSC CSE 2025-26 from 19 April. Click Here for more information.
ForumIAS Answer Writing Focus Group (AWFG) for Mains 2024 commencing from 24th June 2024. The Entrance Test for the program will be held on 28th April 2024 at 9 AM. To know more about the program visit: https://forumias.com/blog/awfg2024
UDAY scheme
- UDAY scheme was launched in November 2015, the Ujjwal DISCOM Assurance Yojana (UDAY) was designed to turn around the precarious financial position of state distribution companies (DISCOMS).
- The state governments took over 75 % of the debt of their DISCOMS, issuing lower-interest bonds to service the rest of the debt.
- In return, DISCOMS were given target dates (2017-19) to meet efficiency parameters like reduction in power lost through transmission, theft and faulty metering.
- It empowers DISCOMs with the opportunity to break even in the next 2-3 years. This is through four initiatives.
- 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
- Successes of the scheme:
- Of the 28 states that implemented it, 10 have shown either reduced losses or profits in FY ’19.
- Most of the states registered an improvement in reducing the ACS-ARR gap and in bringing down AT&C losses.
