UDAY Power Debt in Retrospect and Prospects: Analyzing the Efficiency Parameters
Amandeep Kaur () and
Lekha cHAKRABORTY ()
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Amandeep Kaur: National Institute of Public Finance and Policy
Working Papers from National Institute of Public Finance and Policy
The Government of India launched the Ujwal DISCOM Assurance Yojana (UDAY), in November 2015, with an objective of "Power for All". Under the UDAY scheme, selected States agreed to convert 75 per cent of the DISCOM's (State Power Distribution Companies) power debt into State government non-SLR bonds, priced at not more than 75 basis points above the prevailing cut-off yield rate of govern-ment security of 10-year maturity. At aggregate level, so far, around 86 per cent of UDAY bonds have been issued - Rs. 2.32 lakh crores out of Rs. 2.69 lakh crores - across all UDAY States/UTs. Our estimates reveal that the financial and operational efficiency parameters envisaged in UDAY tripartite MoUs - between DISCOMs, the State Governments and the Ministry of Power, Government of India - have not been met by many States. Using UDAY portal data, we find that the average AT C (Aggre-gate Technical and Commercial) losses that should have been implemented in states -due to political econmy reasons - and the operational parameters in our analysis indicate widening inefficiencies across States in power infrastructure.
Keywords: Power infrastructure; Power Debt; Bonds; Financial efficiency (search for similar items in EconPapers)
JEL-codes: H00 I3 J16 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-eff
Note: Working Paper 244 2018
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Working Paper: UDAY Power Debt in Retrospect and Prospects: Analyzing the Efficiency Parameters (2019)
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