Punjab becomes seventh state to join UDAY; to save Rs 5,000 crore

Punjab has become the seventh state today to join UDAY scheme meant for the revival of discoms that will help it save Rs 5,475 crore in the next three years under the programme.

Centre is expecting Jammu & Kashmir to formally join UDAY next week as the state has already finalised the terms of the agreement for the scheme.

The other two states, which can sign the formal agreements this month to join the scheme are Andhra Pradesh and Haryana.

After Punjab joining UDAY scheme, around Rs 1.6 lakh crore debt of discoms have been covered through the programme which is about 37 per cent of total outstanding of Rs 4.3 lakh crore in the country.

The agreement was singed in the presence of Power Minister Piyush Goyal and Punjab Deputy Chief Minister Sukhbir Singh Badal.

On this occasion, Badal said: “Punjab will benefit a lot from UDAY scheme. The state will save over Rs 5,000 crore. Our electricity department will save Rs 600 crore on account of interest saving alone. Our Department will be strengthened further which was working for making Punjab a power surplus state.”

Badal further said: “We have initiated talks with the Center to replace all inefficient agricultural pumps in Punjab with new ones. This will result in more water and saving power. We will also talk to today to join the LED lights programme.”

Goyal said, “We will discuss today to replace all inefficient old agricultural pumps with Mark IV or V efficient pumps in Punjab.”

Uttar Pradesh, Bihar, Rajasthan, Gujarat, Jharkhand and Chhattisgarh have already signed the agreement to join UDAY scheme.

Under the scheme, the reduction in the aggregate technical and commercial and transmission losses to 14 per cent and 2.5 respectively in next three years would result in additional revenue of around Rs 1,600 crore.

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