New Delhi, Nov 5 (IANS) The government on Thursday approved a mega financial revival plan for the power distribution companies involving states, banks, electricity generation firms and Coal India.
The salient features of the mega revival plan -- Ujwal Discom Assurance Yojna (Uday) which will help power distribution companies restructure outstanding debt of Rs.4.30 lakh crore are:-
-- States to take over 75 percent of Discoms debt by 2016-17.
-- Remaining debt to be converted into loans with marginal interest rate
-- Debt not be included as fiscal deficit of state governments
-- States to issue open market bonds to banks holding the debt
-- States shall take over the future losses of Discoms
-- States accepting Uday to be given priority funding
-- States accepting Uday to be supplied with additional coal at notified prices
-- Rs.4.30 lakh crore debt to be restructured through Uday
-- Banks advised not to give further loans to loss-making discoms
-- Discoms to comply with the renewable purchase obligation (RPO)
-- Uday to allow Discoms to break even in the next 2-3 years
-- Strict monitoring mechanism set up for Uday
-- Uday to improve operational efficiencies of Discoms
-- Reduce cost of power
-- Uday to see increased supply of cheaper domestic coal
-- Coal linkage rationalisation and liberal coal swaps
-- Supply of washed and crushed coal
-- Faster completion of transmission lines
-- Uday described as major step for providing 24X7 power for all
