Functionning of UDAY scheme
Q. Which of the following statements is/are correct about UDAY scheme?
1. UDAY scheme shifts 50 per cent of power DISCOMs debt burden to states’ balance sheets.
2.States can convert the debt into state bonds.- Published on 06 Jan 16
a. Only 1
b. Only 2
ANSWER: Only 2
- UDAY scheme shifts 75 per cent of power DISCOMs debt burden to states’ balance sheets.
- The scheme ensures the ease of financial crunch facing power distribution companies, or discoms, that has impaired their ability to buy electricity.
- State governments, which own the discoms, can take over 75 percent of their debt as of September 30 and pay back lenders by selling bonds.
- For the remaining 25 percent, discoms will issue bonds.