Four states, including Madhya Pradesh, Telangana and Tamil Nadu, may soon join the Centre’s UDAY scheme meant for revival of debt-stressed power distribution companies.
“Power Ministry talks with Madhya Pradesh, Telangana, Tamil Nadu and Puducherry on UDAY scheme are at advance stages. These states are likely to join the scheme very soon,” a source said. Madhya Pradesh can formally ink the agreement in a few weeks, the source said. Madhya Pradesh discoms have an accumulated debt of Rs 35,000 crore. The state is estimated to get benefit to the extent of Rs 11,500 crore during next three years of the turnaround. Following the reforms, it could go up to Rs 14,500 crore annually. In the case of Tamil Nadu, the source said the total debt is Rs 67,000 crore, including around Rs 46,000 crore in the distribution segment. It is estimated that during three years of the turnaround, the state will get cumulative benefit of Rs 18,600 crore. After three years, the annual benefits are estimated at Rs 22,420 crore.