Maharashtra Becomes 17th State to Join UDAY

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Government of India signed a MOU with Government of Maharashtra and Maharashtra State Electricity Distribution Co. Ltd. (MSEDCL) under the Ujwal DISCOM Assurance Yojana (UDAY).

Under UDAY, 16 states/UT have already signed the MoU till date, Maharashtra being the seventeenth.

The combined DISCOM debt, including Central PSU dues, that would be restructured in respect of these states is around Rs.2.57 lakh crores, which is around 68% of the total outstanding DISCOM debt as on 30th September, 2015.

An overall net benefit of approximately Rs.9725 crores would accrue to Maharashtra by opting to participate in UDAY, by way of cheaper funds, reduction in AT&C losses, interventions in energy efficiency, coal reforms etc. during the period of turnaround.

Under UDAY, Maharashtra Government has committed to take over 75% of DISCOM’s non-capex debt of around Rs.6600 crores during the current year.

Balance 25% of such debt remaining with the DISCOM would be converted into Bonds or repriced at cheaper rates. This would reduce the interest burden of the State/DISCOM by Rs.595 crores.

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