Government of India signed a Memorandum of Understanding (MOU) with the State of Himachal Pradesh and the State DISCOM under the Ujwal DISCOM Assurance Yojana (UDAY) today, the for operational and financial turnaround of the DISCOM.
Himachal Pradesh is the 18th State to sign MoU under UDAY.
An overall net benefit of approximately Rs. 823 crores would accrue to the State by opting to participate in UDAY, by way of savings in interest cost, reduction in Aggregate Technical and Commercial (AT&C) and transmission losses, interventions in energy efficiency etc. during the period of turnaround.
By signing the MOU under UDAY, the Government of Himachal Pradesh would take over Rs.2891 crores of DISCOM debt, being 75% of the total DISCOM debt of Rs.3854 crores outstanding as on 30.09.2015, as envisaged in the scheme.
The scheme also provides for the balance debt of Rs.963 crores to be re-priced or issued as State guaranteed DISCOM bonds, at coupon rates around 3% less than the average existing interest rate.
The annual saving in the interest cost to the State would be around Rs.140 crores on account of restructuring of the DISCOM debt.
Central schemes such as Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY), Integrated Power Development Scheme (IPDS), Power Sector Development Fund (PSDF) or such other schemes of Ministries of Power and New & Renewable Energy are already providing funds for improving Power Infrastructure in the State and additional/priority funding would be considered under these schemes, if the State/DISCOM meet the operational milestones outlined in the scheme.