UDAY scheme: A way out?

♤ Debt restructuring of Discoms: It mandates states to take over 75% Discoms debt outstanding as of September 2015.

♤ Reduction of AT&C losses to 15% by 2018-19 from more than 30% now.

♤ Rationalize tariffs to reduce the gap between average cost of supply and average revenue realized by 2018-19.

♤ States shall take over future losses of Discoms in a phased manner and enforce financial discipline.

In this way, UDAY scheme seeks to improve the financial health of Discoms thereby enabling them to buy surplus power to meet the demand.