Bonds worth Rs 1.5-1.75 lakh cr to be issued under Uday, says Goyal
Buoyed by the success of Uday Scheme for revival of debt-ridden discoms, power minister Piyush Goyal on Friday said bonds worth Rs 1.5-1.75 lakh crore are expected to be issued in the ongoing fiscal.Modi Govt Two Years Updated: May 25, 2016 12:04 IST
Buoyed by the success of Uday Scheme for revival of debt-ridden discoms, power minister Piyush Goyal on Friday said bonds worth Rs 1.5-1.75 lakh crore are expected to be issued in the ongoing fiscal.
“This year, you may see slightly bigger amount. May be Rs 1.5-1.75 lakh crore of Uday bonds will be issued,” Goyal told reporters while addressing the media on the achievements of his three ministries of power, coal and new and renewable energy in the last two years.
Uday scheme was launched by the Centre in November last year for revival of debt-stressed distribution companies.
He further said Uday bonds worth about Rs 1 lakh crore were issued in the last financial year.
“Central Government does not borrow. Borrowings are by the state government and the state discoms, although that borrowing is domestic borrowing.... Last year, Uday bonds worth about Rs 1 lakh core were issued,” the minister said.
The government was also looking at bringing in some amendments in the Uday programme to accommodate those states, which have privatised discoms, he further said.
“They (Odisha) have requested the central government that they would like to participate in Uday and now we are looking to bring in some amendments through the Uday programme,” the minister said.
“I am going back to the Cabinet to see how we can support states like Odisha which are privatised but are going through problems and can ensure how they can enjoy the benefits of Uday,” the minister added.
He further said 10 states have already signed agreements to join Uday and eight states and one union territory have agreed to join the scheme.
The discoms have accumulated debt of Rs 4.37 lakh crore. Under the programme, the states will issue bonds to take on 75% of the debt of these discoms and the remaining credit will be paid through state-guaranteed bonds issued by discoms.
Rajasthan has issued bonds worth Rs 37,350 crore followed by Uttar Pradesh at Rs 24,332 crore, Haryana at Rs 17,300 crore, and Punjab at Rs 9,860 crore.
Jharkhand issued bonds worth Rs 6,136 crore while Jammu & Kashmir and Bihar issued securities worth Rs 2,140 crore and Rs 1,553 crore, respectively.
Chhattisgarh has issued bonds worth Rs 870 crore under the scheme to pare debt of its discoms.