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
c. Both
d. None

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.

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