Rs.2.07 Trillion (~$30.99 Billion) of DISCOM Debt Restructured Under India’s UDAY Program Says Mr. Piyush Goyal

A total of ~Rs.2.07 trillion (~$30.99 billion) DISCOM debt has been restructured under the Ujwal DISCOM Assurance Yojana (UDAY) program in India. UDAY is a government program designed to facilitate the financial turnaround of DISCOMs (utilities). There are 22 states and union territories that have joined the UDAY program.

Of the ~Rs.2.72 trillion (~$40.73 billion) debt proposed to be restructured, for the 15 states who have joined for both, operational and financial turnaround, Rs.2.07 trillion (~$30.99 billion) worth liabilities have already been restructured, stated Mr. Piyush Goyal, Minister for Power, in the Lok Sabha.

Mercom had previously reported on the progress of UDAY program after a year of inception.


The incentive program that was being considered by MNRE to support the Indian domestic solar manufacturers will not be moving forward. With the solar sector in India largely dependent on imports of solar cells and modules, domestic manufacturers were eagerly awaiting the announcement of a special incentive package or program to help their growth within the sector.

No program or package focusing on solar manufacturing has been approved, stated Mr. Piyush Goyal, Minister for Power, in the Lok Sabha.

This a blow to indigenous solar manufacturing which is marred by hurdles in access to financing and lack of capital for  research and development. Mercom had previously reported, that manufacturers were hoping for some kind of subsidy or incentive from the government to scale up production, but were disappointed that the current budget did not provide any.

According to Mercoms Manufacturing Tracker, installed capacity of domestic solar cells and modules in the country is estimated to be 2,815 MW and 8,008 MW respectively, while operational capacity of solar cells and modules is 1,448 MW and 5,246 MW respectively as of December, 2016.[W1] 

The only respite for indigenous solar manufacturers is the Modified Special Incentive Package Program (M-SIPS), which provides 20-25 percent capital subsidy and other tax incentives for companies manufacturing electronic goods (which PV falls under).  So far, none of the applicants seem to have been approved under this program.[W2] 

 [W1]We should put in how much we are installing in India as whole to compare imports vs domestic.

 [W2]Can we add a bit more detail around this program what is it? Is it an MNRE program? Is it new was this just approved? 

© 2017 by Mercom Capital Group, LLC. All Rights Reserved.

Mercom Capital Group
Clean Energy Communications and Consulting
Public Relations, Community Relations, Investor Relations
Austin, Texas; Bangalore, India