Wednesday, January 18, 2017

UDAY : BJP ruled state defaults

 Ujwal Discom Assurance Yojana (UDAY) was introduced as a scheme that would nurse State-owned power distribution companies back to health. Now, however, doubts are rising about whether States are using the scheme as another window to pile up fresh debt.

Jharkhand, the first state to sign up for the UDAY scheme, is a case in point. On December 6, 2015, Union Power Minister Piyush Goyal thanked the BJP-ruled State for taking the lead, tweeting: “24x7 power is not far.”

The State raised a loan and cleared historic dues of ₹5,553 crore, accumulated between 2001 and September 2015 — paying ₹4,770 crore to statutory generation utility Damodar Valley Corporation (DVC) and ₹783 crore to Coal India.

A year later, however, Jharkhand has piled up ₹1,300 crore in fresh dues to DVC and ₹32 crore to Coal India. It has simply stopped paying dues to DVC for the purchase of roughly 700 MW a day. 

( inputs from BL)

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