Jharkhand Bijli Vitran Nigam limited would make its entry into Ujwal Discom Assurance Yojna (UDAY) meant for operational and financial touranound of power distribution companies. Under this pending dues on the JBVNl on CPSUs like DVC, CIl or CCl till September 30, 2015 would be paid by the Center.
The Cabinet on Tuesday gave its nod to proposal for the MoU to be done involving the Center, the State and JBVNl. The scheme has special provision for Jharkhand in which it would given waiver from the FRBM rate of interest which is quite high and near to market rate.
“Now the Centre would waive 60 per cent of delayed payment surcharge which is about `2,200 crore. With this the State could save about `1,380 crore, which would come as benefit for the exchequer,” said Energy Secretary SKG Rahate.
With this, the DISCOM would have to improve its working culture so that similar situation is not crated in the future. The MoU would have detailed list of do’s and in the case of failure the JBVNl would be entirely responsible for it and would be liable for arranging market borrowings by issuing bonds.