Financial losses decline by 21.5 per cent under UDAY

The aggregate financial losses of state power distribution companies under the centre’s Ujwal Discom Assurance Yojana have reportedly declined by 21.5 per cent to reach Rs 402.95 billion in 2016-17. This decrease in losses has primarily been driven by lower interest costs for the discoms due to states taking over 75 per cent of their short-term liabilities. While discoms in Rajasthan, Uttar Pradesh, Madhya Pradesh, Tamil Nadu and Maharashtra witnessed a drop in losses by 54 per cent, 14 per cent, 16 per cent, 35 per cent and 8 per cent respectively, the losses for discoms in Punjab, Jharkhand and Bihar have increased by 20 per cent, 72 per cent and 53 per cent respectively.