Thu. Jan 28th, 2021

What IS Ujwal DISCOM Assurance Yojana ?

Ujjwal Discom Assurance Plan is a financial change and revival package for India’s power distribution companies, which has been initiated with the intention of finding a permanent solution to the financial mess by the Indian government, which has electricity distribution and it is a financial restructuring and efficiency enhancement program is

Objectives OF Uday scheme 

The Ministry of Energy, Government of India, started the ULB Discom Assurance Plan (UDAY), which was approved by the Union Cabinet on November 5, 2015. The main objectives of the scheme are to:

  • Financial changes
  • Improvements in operations
  • Reduction in cost of power generation
  • Development of renewable energy
  • Energy efficiency and protection

Benefits to affiliate states in Uday Scheme

  • Increase in domestic coal supply
  • Coal linkage allocation at notified prices
  • Coal value rationalization
  • Coal linkage rationalization and coal swap allowed
  • Dry and crushed coal supply
  • Additional coal at notified prices
  • Interstate transmission lines are fast approaching
  • Buy power through transparent competitive bidding

Effect of Uday Scheme

  • Increasing demand for electricity
  • Improvement of PLF in the production of plants
  • Decrease in stressed assets
  • Availability of cheap fund
  • Increase capital investment
  • Development of renewable energy sector

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