Andhra Pradesh has become the first state in the country to join the Centre’s scheme for revival of debt stressed power distribution companies after the state gave in-principle nod to the Power Ministry for joining UDAY. Though many other states including Jharkhand, Rajasthan, Tamil Nadu and Haryana have evinced the interest in joining the scheme, Andhra Pradesh is the first state to officially communicate its intend to avail benefits under UDAY.

According to a power ministry statement, Andhra Pradesh has conveyed in-principle approval to the ministry for joining UDAY Scheme (Ujwal Discom Assurance Yojana). The scheme is optional and operationalised through signing of MoU between state governments, state discoms and Centre.

When the scheme was approved by the Union Government last month, Goyal had said that discoms in Rajasthan, Uttar Pradesh, Tamil Nadu and Haryana are the biggest loss-making in the country. Besides, 6-7 other state utilities are stressed. A senior official said the states cannot officially join the scheme without approval of their respective State Cabinets headed by the chief minister as it take a little while to understand the contours of such programme.

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