Features:

♤ It empowers DISCOMs with the opportunity to break even in the next 2-3 years. This is through four initiatives (i) Improving operational efficiencies of DISCOMs; (ii) Reduction of cost of power; (iii) Reduction in interest cost of DISCOMs; (iv) Enforcing financial discipline on DISCOMs through alignment with State finances.

♤ Under the scheme, state governments, which own the discoms, can take over 75 per cent of their debt as of September 30, 2015 and pay back lenders by selling bonds. For the remaining 25 per cent, discoms will issue bonds.

♤ UDAY is optional for all States. However, States are encouraged to take the benefit at the earliest as benefits are dependent on the performance.

♤ States accepting UDAY and performing as per operational milestones will be given additional / priority funding through Deendayal Upadhyaya Gram Jyoti Yojana (DDUGJY), Integrated Power Development Scheme (IPDS), Power Sector Development Fund (PSDF) or other such schemes of Ministry of Power and Ministry of New and Renewable Energy.

♤ Such States shall also be supported with additional coal at notified prices and, in case of availability through higher capacity utilization, low cost power from NTPC and other Central Public Sector Undertakings (CPSUs).

A Multi-Level Monitoring mechanism for Ujwal DISCOM Assurance Yojana (UDAY) has been put in place to ensure a close monitoring of performance of the participating States under UDAY. Also a web portal (www.uday.gov.in) has been created for monitoring purpose.