Rajasthan issues Rs 28,400 crore bonds to 26 banks under UDAY scheme

New Delhi: Rajasthan has issued Rs 28,455 crore bonds under UDAY scheme, meant for the revival of power distribution companies, to 26 banks at an interest rate of 8.39 percent.

"Congratulations to Rajasthan Chief Minister Vasundhara Raje on issue of UDAY bonds worth Rs 28,455 crore to 26 banks at 8.39 per cent resulting in affordable Power For All," Power Minister Piyush Goyal tweeted today.

Centre had launched UDAY scheme in November for revival of power distribution companies across the country, which have cumulative debt of over Rs 4.37 lakh crore.

Power Ministry, Rajasthan and its discoms (Jaipur Vidyut Vitran Nigam Ltd, Jodhpur Vidyut Vitran Nigam Ltd and Ajmer Vidyut Vitran Nigam Ltd) had signed an agreement under the Ujwal Discom Assurance Yojana (UDAY) on January 27, for operational and financial turnaround of these utilities.

The outstanding debt of the discoms of the state as on September 30, stood at Rs 80,500 crore, out of which 75 per cent or Rs 60,500 crore would be taken over by the state, as envisaged in the scheme.

The scheme also provides for the balance debt of Rs 20,000 crore to be repriced or issued as state guaranteed discom bonds, at coupon rates around 3 per cent less than the average existing interest rate.

The Rajasthan discoms would have savings of about Rs 3,000 crore in annual interest cost through reduction of debt and through reduced interest rates on the balance debt.

Rajasthan would derive an overall net benefit of about Rs 21,000 crore through UDAY by way of savings in interest cost, reduction in AT&C and transmission losses, interventions in energy efficiency, coal reforms etc.