The central government came out with a comprehensive reform programme called the Ujwal Discom Assurance Yojana (UDAY) in November 2015, for the financial and operational turnaround of electricity distribution companies (discoms). The scheme is beneficial because it provides for affordable power to all, financial turnaround of discoms and also increases renewable energy penetration. Until the end of FY16, as many as 10 states have signed MoUs, which constitute about 45% of total debt. The scheme makes a clear distinction in its responsibilities between state governments, discoms and the Centre. State governments have committed to take over future losses from 5% to 50% progressively from FY18...
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