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Karnataka and Goa have signed an agreement to join the UDAY scheme meant for the revival of discoms that may result in a total gain of about Rs 4,570 crore to both the states over next 3 years.
Power Minister Piyush Goyal said in a tweet.
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The minister also tweeted:
Earlier in the month, the minister had said that Assam is also keen to join the UDAY scheme, which is aimed at reviving the debt-laden power distribution companies.
The other four states that recently went to assembly polls – Kerala, Tamil Nadu, West Bengal and Puducherry – had also evinced interest to join the scheme once the elections were over, the minister had said.
Government had earlier said that the Power Ministry would soon approach the Cabinet to seek approval for enabling private sector electricity distribution companies (discoms) to get operational benefits of the Ujwal DISCOM Assurance Yojana (UDAY).
Under this scheme for reviving financially stressed electricity distribution utilities, state governments takeover 75 per cent of the debt with the electricity distribution utilities. The remaining debt is issued as discom bonds, backed by state governments.