Rajasthan has become the third State after Jharkhand and Chhattisgarh to sign the MOU under UDAY,a scheme launched by by the Government of India on 20th November, 2015 to ensure a permanent and sustainable solution to the debt-ridden Distribution utilities to achieve financial stability and growth.
"The Distribution Utilities across the country have a long standing debt of almost Rs.4.3 Lakh crore. UDAY is an effort to make these DISCOMs financially and operationally healthy, to be able to supply adequate power at affordable rates, and enable the Governments to make efforts towards 100% Village electrification and 24X7 Power for all."a statement issued by Ministry of Power said.
"By signing the MOU under UDAY, the DISCOMs of Rajasthan have taken the first step towards financial turnaround. The outstanding debt of the DISCOMs as on 30.09.2015 stands at Rs.80500 crore, out of which 75%, ie. Rs.60500 crore would be taken over by the State, as envisaged in the scheme. The scheme also provides for the balance debt of Rs.20000 crore to be re-priced or issued as State guaranteed DISCOM bonds, at coupon rates around 3% less than the average existing interest rate. The Rajasthan DISCOMs would have savings of about Rs.3000 crore in annual interest cost through reduction of debt and through reduced interest rates on the balance debt." the statement issued by Ministry of Power added.