Telangana and Assam have signed MoU to join the Ujwal Discom Assurance Yojna (UDAY). The total number of states covered under the scheme now reached 20.
The scheme aims to better the performance of state-run power distribution companies. The Telangana government will take over ₹8,923 crore of the total ₹11,897 crore of discom debt.
The Assam government will take over ₹928 crore out of total ₹1,510 crore discom debt (being 75 per cent of their respective discom debt outstanding as on September 30, 2015, as envisaged in the scheme) and the balance debt would be re-priced or issued as state-guaranteed discom bonds.
This will bring annual savings in interest payments to the tune of ₹387 crore to Telangana and ₹37 crore to Assam. The interest cost on future borrowings is also expected to reduce, providing a saving of around ₹30-40 crore to these States.
In the case of Telangana, the reduction in Aggregate Technical and Commercial losses (AT&C) losses and transmission losses to 9.95 per cent and 3 per cent respectively, is likely to bring additional revenue of around ₹1,476 crore, during the period of turnaround, whereas the additional revenue of ₹699 crore would accrue to Assam on reduction of AT&C losses and transmission losses to 15 per cent and 3.4 per cent, respectively.
