States line up to join center’s Uday Scheme for power distribution cos

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NEW DELHI: States with financially sound power distribution companies and undivided electricity departments are lining up to be part of the Center’s Ujwal Discom Assurance Yojana (Uday) for incentives like concessional coal, power and finance that reduce costs. Gujarat and Madhya Pradesh,whose distribution companies do not have accumulated loans, have evinced interest in joining the scheme along with 10 states which do not have separate power distribution firms, a senior government official said. Rajasthan, Chhattisgarh and Jharkhand have signed agreements with the Union power ministry to be part of the scheme, while Uttar Pradesh, Bihar and Haryana too will be signing similar memoranda of understanding. A dozen other states have conveyed their in-principle approvals to be part of the scheme.
“We have received interest from Madhya Pradesh and Gujarat for Uday. Madhya Pradesh has three power distribution firms and Gujarat has four. These distribution companies do not have financial problems but are looking at other incentives that can reduce their costs and avoid tariff hikes,” the official said. Goa, Daman & Diu, Jammu & Kashmir, Puducherry, Arunachal Pradesh, Nagaland, Manipur, Mizoram and Sikkim, which do not have unbundled power departments, are among the provinces that have expressed their interest to participate.

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