Punjab joins “UDAY” scheme for power sector

Punjab joins “UDAY” scheme for power sector
Saturday March 5, 2016
The Government of India, the State of Punjab and the Punjab State Power Corporation Limited (PSPCL) signed Memorandum of Understanding (MOU) under the Scheme UDAY for operational and financial turnaround of the DISCOMs. The signing ceremony was held in the august presence of the Union Minister of State for Power Piyush Goyal and Deputy Chief Minister of Punjab Sukhbir Singh Badal.
Speaking on the occasion, Piyush Goyal said that Punjab will be highly benefitted by the UDAY especially the farmers and the industrialists. He also assured that the Power Ministry is in discussion with the Punjab Government about replacing all old water pumps with the improved, technologically advanced and energy efficient water pumps in the state. While Sukhbir Singh Badal appreciated the Power Minister for taking India from being power deficit country towards power surplus country and said that UDAY will be tackling total discom debt of Rs.20838 and thus revive the power sector of the state.
Today the Government of Punjab has taken a positive step towards supporting its DISCOM by signing the MOU under UDAY and agreeing to take over the debt of the DISCOM gradually. The Government of Punjab would take over Rs.15628 crore of DISCOM debt, being 75% of the total DISCOM debt of Rs.20838 crore outstanding as on 30.09.2015, as envisaged in the scheme. The scheme also provides for the balance debt of Rs.5210 crore. to be re-priced or issued as State guaranteed DISCOM bonds, at coupon rates around 3% less than the average existing interest rate. The annual saving in the interest cost to the State would be around Rs.625 crore on account of restructuring of the DISCOM debt.
An overall net benefit of approximately Rs.5475 crore would accrue to the State by opting to participate in UDAY, by way of savings in interest cost, reduction in AT&C and transmission losses, interventions in energy efficiency, coal reforms etc. during the period of turnaround.


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