Bihar has joined the Centre’s power distribution sector revival scheme that targets operational and financial turnaround of state discoms, starting with restructuring of their debt.
Bihar on Monday signed a memorandum of understanding with the Central government under the Ujjwal Discom Assurance Yojana (UDAY), becoming the sixth state —second with a non-BJP government after Uttar Pradesh — to do so. Other states that have become a part of the scheme are Rajasthan, Chhattisgarh, Jharkhand and Gujarat. Under the scheme, Bihar government would take over 75%, or Rs 2,332 crore, of the state discom’s debt of Rs 3,110 crore as of September 2015. The balance Rs 778-crore outstanding will be re-priced or issued as state guaranteed discom bonds at coupon rates of around 3% less than the average existing interest rate.