Tamil Nadu joins central governments Uday Project
Posted on: 09/Jan/2017 5:49:41 PM
Ujwal Discom Assurance Yojana (UDAY) is the financial turnaround and revival package for electricity distribution companies of India (DISCOMs) initiated by the Government of India with the intent to find a permanent solution to the financial mess that the power distribution is in.
Tamil Nadu has joined the UDAY as the 21st State. In a special event organised on this development, Tamil Nadu State Electricity Minister Thangamani signed the central government’s Memorandum of Understanding (MoU).
The Central Minister for Electricity, Piyush Goel signed the MoU on behalf of the central government.
Thus, the state of Tamil Nadu joined the central government’s UDAY package as the 21st state.
The state government of Tamil Nadu joined the package after a clause insisting on the quarterly revision of electricity rates.
The central government has promised good relief in the next 3 regarding the huge debts incurred by the various state electricity boards/authorities.
By joining the central government’s UDAY package Tamil Nadu will get the overall benefits worth Rs. 11000 Crores. The state government will bear 75 percent of the debts incurred by TANGEDCO.
The minister Piyush Goel explained regarding the UDAY package:
The package has been designed to be of benefit to each and every electricity consumer. Until now, this has been implemented in all other states except Tamil Nadu. There is not even a single minor feature harming the consumer in UDAY package.
The scheme has a feature to save every single paisa spent by the consumer. By joining this UDAY package, the Tamil Nadu government can save up to Rs. 22000 Crores contributed by the public.
