Ujjwal Discom Assurance Plan | Financial Restructuring - Energy Efficiency Improvements - Key Objectives and Features of Ujjwal Discom Assurance Plan
Ujjwal Discom Assurance Yojana The Ujjwal Discom Assurance Yojana (UDAY) is a financial restructuring and turnaround package for electricity distribution companies (DISCOMs) in India. Launched by the Government of India in November 2015, UDAY aims to improve the financial health of struggling DISCOMs, reduce their losses, and ensure a stable and affordable power supply to consumers. Key Objectives and Features of Ujjwal Discom Assurance Plan: 1. Financial Restructuring: Under UDAY, state governments take over 75% of the short-term liabilities of their respective DISCOMs. The remaining 25% of the liabilities are issued as state-guaranteed DISCOM bonds. This restructuring helps reduce the interest burden on DISCOMs, making their finances more manageable. 2. Operational Efficiency: Participating DISCOMs are required to implement measures to improve operational efficiency, reduce power losses, and enhance revenue collection. This includes initiatives to reduce theft, improve billing a...