Govt takes over 75 pc debt of power utilities

Pradeep Sharma

Tribune News Service

Chandigarh, July 15

The Haryana Government has put the Ujwal Discom Assurance Yojana (UDAY), aimed at revamping the ailing power sector, on the fast track. Acting swiftly, the state government has taken over 75 per cent (Rs 25,950 crore) of the total debt of the power distribution companies—nearly two-and-a-half months before the scheduled date of September 30.

Sources said 25 per cent (Rs 8,650 crore) of the outstanding debt (Rs 34,600 crore) of the power Discoms—Uttar Haryana Bijli Vitran Nigam (UHBVN) and Dakshin Haryana Bijli Vitran Nigam (DHBVN)— was to be taken over by the Haryana Government by September 30 this year. However at the instance of Chief Minister Manohar Lal Khattar, who wanted to put the power sector back on track, the entire amount of Rs 8,650 was taken over by the state government on July 4.

According to the provisions of the UDAY, 50 per cent (Rs 17,300 crore) of the outstanding debt was taken over by the government by March 31 this year. Out of the Rs 8,650 crore (25 per cent) amount, Rs 7,575 crore was taken over by the government on June 15 and Rs 300 crore on June 30 this year. Lastly, Rs 775 crore was taken over on July 4, sources asserted.

The Council of Ministers had approved the implementation of the Central government-floated UDAY, aimed at bringing Discoms out of the red and improving their operational and financial efficiency, on March 2 this year.

State records lowest rate of borrowing bonds

Haryana has recorded the lowest cost of borrowing under UDAY bonds among the states opting for power revamp scheme. While the cost of borrowing for Haryana comes out to be 8.2 per cent, for the neighbouring Punjab, the rate is stated to be 8.4 per cent. For Rajasthan, it is pegged at 8.26 per cent while for UP, it is still higher at 8.49 per cent.