Bihar-The Sixth State To Enter Into Uday Scheme

UDAY(Ujwal Discom Assurance Yojana) is a tripartite memorandum between Bihar government, state Discoms and the Power ministry for the revival of debt ridden state distribution utilities to save 9000 crores.

Points to note

• Bihar is the sixth state to join this UDAY scheme
• It is the second Non-UPA state after Uttar Pradesh to join this scheme
• It will help the debt ridden distribution system of the state to save 9000 crores in the next 3 years
• The total debt is of 3110 crores out of which the state government will bear 2332 crores
• Remaining is to be distributed as Discom Bonds with interest of Rs.117 crores
• The biggest benefits come from AT& C, transmission losses which come around 6650 Crores
• In addition, coal reforms also contribute 1086 crores

Flash points

• The other states in this scheme include Rajasthan, Gujarat, UP,Chattisgarh and Jharkhand
• Minister of Power, coal and New& renewable energy- Piyush Goyal
• Total worth of this project for all 6 states- 4 lakh crore or 33% of the total debt

 Key points:

• Bihar Capital: Patna
• Bihar Governor: Ram Nath Kovind
• Bihar CM: Nitish Kumar