Question : Debt under UDAY

(a) the names of the States that have joined Ujwal DISCOM Assurance Yojana (UDAY);

(b) the details of the States which have borne the burden of debt along with the amount under UDAY, State and year-wise;

(c) whether the consumers have to pay more for power due to financial burden on the States under the said scheme and if so, the details thereof;

(d) whether debt on UDAY is increasing; and

(e) if so, the details thereof?

Answer given by the minister

THE MINISTER OF STATE (INDEPENDENT CHARGE) FOR POWER, NEW & RENEWABLE ENERGY AND THE MINISTER OF STATE FOR SKILL DEVELOPMENT & ENTREPRENEURSHIP

( SHRI R.K. SINGH)

(a) : 26 States and 07 Union Territories (UTs) namely, Andhra Pradesh, Arunachal Pradesh, Assam, Andaman & Nicobar Islands, Bihar, Chhattisgarh, Dadra & Nagar Haveli, Daman & Diu, Goa, Gujarat, Haryana, Himachal Pradesh, Jammu & Kashmir, Ladakh (erstwhile state of Jammu & Kashmir), Jharkhand, Karnataka, Kerala, Lakshadweep, Maharashtra, Manipur, Madhya Pradesh, Meghalaya, Mizoram, Nagaland, Punjab, Puducherry, Rajasthan, Sikkim, Tamil Nadu, Telangana, Tripura, Uttar Pradesh and Uttarakhand have joined Ujwal DISCOM Assurance Yojana (UDAY).

(b) & (c) : The details of the Bonds floated by 16 UDAY States to takeover 75% of debt of their Distribution Companies (DISCOMs), as existing on 30.09.2015, are available at Annexure. Since tariffs are determined taking into account several parameters including cost of debt, consumers have derived the benefit on tariffs to the extent of carrying cost of the debt taken over by the States. Thus, the question of consumers paying more due to financial burden on the States does not arise.

(d) & (e) : Since UDAY envisaged States taking over a fixed percentage of debt of DISCOMs existing on 30.09.2015 as a one-time measure, the question of increase of such debt on the States does not arise.

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