The Government of India, the State of Bihar and the DISCOMs of Bihar (North Bihar Power Distribution Company Limited, and South Bihar Power Distribution Company Limited) signed Memorandum of Understanding (MOU) under the Scheme UDAY – “Ujwal DISCOM Assurance Yojana” here today for operational and financial turnaround of the DISCOMs. The signing ceremony was held in the august presence of the Minister of State for Power (IC), Piyush Goyal.
The MoUs was signed on behalf of Ministry of Power by Dr A K Verma, Shri Pratyaya Amrit , Secretary Energy on behalf of State Government of Bihar and on behalf of two DISCOMs by Shri R Lakshmanan , MD, North Bihar Power Distribution Company Limited and Shri Sandeep Kumar MD ,South Bihar Power Distribution Company Limited .
Bihar is the sixth State to have accepted UDAY for bringing about a positive change in the Power Sector scenario of the States. Rajasthan, Uttar Pradesh, Chhattisgarh and Jharkhand have already signed the MoU under UDAY for operational and financial turnaround of DISCOMs. With the signing of MoU with Bihar, approximately 33% of the DISCOM debt, ie. around Rs.1.40 lakh crore, would be restructured. Gujarat has also signed the MoU for operational turnaround, considering the healthy financial position of the DISCOMs of the State.
An overall net benefit of approximately Rs.9000 cr. 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.
UDAY is an effort to make the DISCOMs financially independent and operationally healthy, to be able to supply adequate power at affordable rates, through 100% Village electrification and 24X7 Power For All.