UDAY - Ujwal DISCOM Assurance Scheme

UDAY Ujwal DISCOM Assurance Scheme 2021 [Ujala Scheme]

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UDAY – Ujwal DISCOM Assurance Yojana | UDAY Scheme – UJALA Scheme 2021 | UDAY Portal | UDAY Scheme Registration | discom – Distribution Company (India)

The government’s UDAY – Ujwal DISCOM Assurance Scheme (ujala scheme) is a financial restructuring and efficiency enhancing program aimed at reducing the debt burden of state-owned electricity distribution companies (DISCOM). DISCOMs – Most of them are owned by the state governments, with accumulated losses of about 3.8 lakh crores and outstanding debt of about 4.3 lakh crores (as on March 2015)

The UDAY web portal www.uday.gov.in has been developed by states / DISCOM for uploading UDAY parameters and transparent dissemination of performance of states / DISCOMs under UDAY and is currently under testing. This will enable public disclosure of financial and operational progress made under UDAY by states and DISCOMS based on a mutually decided framework.

The improvement barometer and trend of improvement, an important feature of the portal, will make an objective analysis of the performance of DISCOMs / States under UDAY. Mobile app is also to be launched soon.

Ujwal DISCOM Assurance Yojana 2021

Ujjwal Discom Assurance Yojana is a financial change and revival package for India ‘s power distribution companies, launched by the Government of India with the intention of finding a permanent solution to the financial mess, which includes power distribution and is a financial restructuring and efficiency enhancing program. is

Although the main component of UDAY is debt management, other measures such as increasing operational efficiency are also proposed to permanently settle the debt landscape of DISCOMs.

Four initiatives have been designed as part of UDAY to improve the efficiency of DISCOMs:

(i) improving operational efficiency of DISCOMs;
(ii) reduction in electricity costs;
(iii) reduction in interest cost of DISCOMs;
(iv) Implementing financial discipline on DISCOMs through alignment with state finance.

Operational efficiency includes compulsory smart metering, upgrade of transformers and meters to reduce power lost during transmission and distribution (or theft).

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UDAY Yojana Highlights

Scheme NameUDAY Scheme
Full form of the schemeUjwal DISCOM Assurance Yojana
Launched ByPrime Minister Narendra Modi
Year of launch2015
BeneficiaryAll citizens of the country
ObjectiveReduce the burden of electricity debt
Official websiteuday.gov.in
The departmentMinistry of Power

Objectives of UDAY scheme

Ministry of Power, Government of India launched Ujjwal Discom Assurance Yojana (UDAY), which was approved by the Union Cabinet on 5 November 2015. The main objectives of the scheme are as follows:

  • Financial change
  • Operational improvement
  • Power generation cost reduction
  • Development of renewable energy
  • Energy efficiency and conservation

Benefits to participating states in Uday scheme

Reduction in electricity costs through central assistance

  • Increase in domestic coal supply
  • Allocation of coal linkage at notified prices
  • Coal price rationalization
  • Coal linkage rationalization and coal swap permitted
  • Supply of washed and crushed coal
  • Excess coal at notified prices
  • Rapid completion of interstate transmission lines
  • Power purchase through transparent competitive bidding

Effect of Uday scheme

UDAY has detected 62% of the already existing DISCOMS debt at the end of 2014-15. Maharashtra, Telangana, Assam and Kerala are likely to be on board of UDAY soon, with almost 78% of the state territory DISCOM loans (excluding electricity department) to be covered under UDAY.

About 76% of the debt of UDAY states, has been issued with a bond of Rs 1.68 lakh crore and has been successfully issued. Reduction of interest cost has resulted in savings of about Rs 2,236 crore on the QI of FY 2016-17 for the states of Rajasthan, UP Haryana, Punjab, Chhattisgarh and Bihar and this ensures operational stability of participating in DISCOMS.

  • Increasing demand for electricity
  • Improvement in PLF of plant production
  • Reduction in stressed assets
  • Cheap fund availability
  • Capital investment increased
  • Development of renewable energy sector

Finally, 24 * 7 power availability at a cheaper price

MOU Signed by the States under UDAY

The Central Government has signed MOUs with the states for better forwarding of UDAY – Ujwal DISCOM Assurance Scheme, whose PDF you will find here below:

UDAY - Ujwal DISCOM Assurance Scheme

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