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Jharkhand to sign MoU with Power Ministry for central power scheme

Some of the states like Andhra Pradesh, Madhya Pradesh, Rajasthan, Gujarat, Haryana, Punjab, Jammu & Kashmir, Uttar Pradesh and Himachal Pradesh had already given their in-principle nod to join UDAY.

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Piyush Goyal
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Jharkhand will sign a pact on Tuesday with the Power Ministry to join a central scheme for the revival of debt-stressed power distribution companies to become the first state to join UDAY.

"In the presence of Piyush Goyal, Union Minister of State for Power, Coal and New & Renewable Energy & Chief Minister of Jharkhand Raghubar Das, first MoU with State of Jharkhand on 'UDAY' (Ujwal Discom Assurance Yojana) for operational and financial turnaround of discoms will be signed tomorrow," an official said.

The Cabinet had in November approved UDAY to ease the financial crunch faced by power distribution companies or discoms. The scheme was launched to tackle the Rs 4.3 lakh crore debt on discoms besides measures to cut power thefts and align consumer tariff with cost of generating electricity.

Some of the states like Andhra Pradesh, Madhya Pradesh, Rajasthan, Gujarat, Haryana, Punjab, Jammu & Kashmir, Uttar Pradesh and Himachal Pradesh had already given their in-principle nod to join UDAY.

Goyal said in a tweet on Monday, "Congratulations to Hon CM of Maharashtra @Dev_Fadnavis for joining UDAY. This is a huge leap forward in providing 24X7 power to Maharashtra." UDAY assures the rise of vibrant and efficient discoms through a permanent resolution of past as well as potential future issues of the sector.

It empowers discoms with the opportunity to break even in the next 2-3 years.

This is through four initiatives of improving operational efficiencies of discoms, reducing power costs, decreasing interest cost of discoms and enforcing financial discipline on discoms through alignment with state finances.

In an another tweet, Goyal said: "Happy to share that we electrified 160 villages last week, an increase of 42% over the week before." Ministry of Power has electrified 160 villages last week (ending on January 2 2016) in the country, an official statement said.

Out of these electrified villages, 57 villages in Chhattisgarh, 40 in Odisha, 27 in Bihar, 16 in Rajasthan, 9 in Jharkhand and Uttar Pradesh each and one village falls in states of Tripura and Assam each, it said.

Electrification of 160 villages resulted in overall increase of 42% over the week before of ongoing electrification process under Deen Dayal Upadhyaya Gram Jyoti Yojna (DDUGJY), it added. 

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