The Indian states of Telangana and Assam became the 19th
and 20th signatory states of the Ujwal DISCOM (distribution company)
Assurance Yojana (UDAY) program, a government program designed to bring about
the financial turnaround of DISCOMs in the country. Telangana is estimated to
achieve a net benefit of ~Rs.61.16 billion (~$895.8 million) and Assam a net
benefit of ~Rs.16.63 billion (~$243.6 million). A total of 19 states and one
union territory have now become UDAY signatories, accounting for ~90 percent of
the total debt to be restructured through the program.
On the eve of the launch of UDAY Web Portal & Mobile App,
the state governments of Telangana and Assam signed Memorandums of
Understanding (MoUs) with the Ministry of Power for operational and financial
turnaround of their respective state DISCOMs, stated a government release.
The Minister for Power, Piyush Goyal, hinted that another
large state is expected to join the UDAY program by next week.
Mercom has reported in
its recently released India
Quarterly Market Update that the positive effects of the program on the
power sector are yet to be seen. The financial health of DISCOMs has been a primary
hurdle for India in scaling its power generation. It is a major reason behind
power shortages and cuts, and the lack of power for millions of people.