UDAY implementation in Punjab likely to be delayed due to elections

The financial restructuring of State Power Corporation (PSPCL) under (Ujjwal Discom Assurance Yojna) may get delayed as the poll bound state is reluctant to take politically tough decisions such as raising tariffs and cracking down on power theft.

Assembly elections in Punjab are expected early next year and introducing reforms in the ailing can be more damaging than rewarding for the ruling Akali-BJP alliance.

Punjab is one of the 18 states to have joined centre’s flagship UDAY scheme for the revival of the distressed power discoms.

A senior official in Punjab Government told Business Standard as per the agreement that the state Government had taken over the 75% of the debt of PSPCL that costs Rs 15,628 cr.

The state government has already issued bonds worth Rs 15,069 cr and second tranche of bonds valued Rs 559 cr is underway. Bonds for remaining 25% of total debt will be issued by PSPCL on its own.

But the power utilities is hard pressed under outstanding dues from government departments and Punjab Government.

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