Madhya Pradesh and the Union Territory of Puducherry have signed the memorandum of understanding with the Ministry of Power to join the Ujwal Discom Assurance Yojana.

With these two MoUs being signed on Wednesday, the total number of states and union territories who are a part of UDAY has risen to 16, the Power Ministry said in a statement. The combined debt of the electricity distribution utilities which will be restructured stands at ₹2.51 lakh crore as on September 30, 2015.

MP debt takeover

The Madhya Pradesh government will take over ₹26,055 crore of the total debt of ₹34,739 crore at its electricity distribution utilities as on September 30, 2015.

The balance ₹8,684 crore will be issued as State government guaranteed DISCOM bonds. Annual savings due to interest cost savings alone for the electricity distribution utilities will be ₹2,215 crore.

Apart from interest cost savings, reduction in AT&C losses and interventions in energy efficiency as well as coal reforms will help the state of Madhya Pradesh save over ₹17,515 crore over the next three years.

Puducherry figures

Puducherry, which is the first union territory to join UDAY, will work to improve the operational efficiency of the Electricity Department of the Union Territory.

“An overall net benefit of approximately ₹378 crore will accrue to the union territory (Puducherry) by opting to participate in UDAY, by way of cheaper funds, reduction in AT&C and transmission losses, interventions in energy efficiency during the period of the turnaround,” an official statement said.

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