The Centre on Wednesday extended the timeline till March next for the states to join the UDAY scheme for revival of debt-laden power distribution utilities. “The deadline for transferring discoms’ debt to State budget and issuing bonds for 50 per cent outstanding was March 31, 2016. The Union Cabinet decided to extend this date to March 31, 2017,” Finance Minister Arun Jaitley said at a press conference after the Union Cabinet meeting.
“Many States have already singed on it (agreement) to join the UDAY scheme,” he said. With the approval for extension of timeline, the States shall take over 75 per cent of discoms’ debt as on September, 30, 2015 by March 31, 2017 by issuing bonds, an intervention to lower the interest burden, an official release said.
The States which could not join so far would get a chance to join UDAY and put the DISCOM reforms on accelerated path, it added. The Union Cabinet chaired by PM Narendra Modi in its meeting has approved an extension of timeline for taking over 50 per cent of the Outstanding Debt of DISCOMs, as existing on September, 30, 2015, by States and borrowings by J & K under UDAY - a scheme for operational and financial turnaround of DISCOMs.