2. The UDAY scheme is a tripartite agreement to be signed between the central government, the state government and electricity distribution companies. New Delhi: The government`s debt restructuring programme for public energy suppliers – Ujwal Discom Insurance Yojana or UDAY – is not limited to a simple re-edration of credit, but aims to reverse troubled entities, by further monitoring state governments, shows the fine print of the UDAY agreements signed between the Centre and nine states and their electricity suppliers. In addition, such agreements will control populist measures such as free power, as costs will eventually return with the taxpayer`s interest. In accordance with the UDAY agreements, electricity suppliers and states must take steps to reduce technical and commercial losses due to the theft of electricity and the non-collection of invoiced units. These losses represent 35% of the total units delivered to Jharkhand and 32% to Uttar Pradesh. The agreements call for defaults to be identified and shameful, for civil servants to be rewarded and punished on the basis of invoice collection, and for state governments to finance up to half of future losses for electricity distributors. The program was announced by Piyush Goyal, Minister of State for Energy, Coal and Renewable Energy (now Minister of Railways and Minister of Coal) in November 2015. The scheme is optional for states to be able to join. Jharkhand was the first state to enter the UDay system. Other states that have agreed in principle are Gujarat, Chhattisgarh, Andhra Pradesh, Karnataka, Rajasthan, Punjab, Haryana, Jammu and Kashmir, Himachal Pradesh, Madhya Pradesh, Uttarakhand, Telangana, Assam. [2] “Distributors will increase power supply in sectors that are reporting a reduction in technical and commercial losses… Make a campaign of name and shame to control the theft of thought…
link the performance of each officer in charge to benefits for incentives or sanctions,” the agreement states. Copies of the agreements were published on 17 March by the EU Ministry of Power. The states that signed the agreements are Bihar, Chhattisgarh, Gujarat, Haryana, Jammu and Kashmir, Jharkhand, Punjab, Rajasthan and Uttar Pradesh. Rajasthan has signed a tripartite agreement with the central government and its three nightclubs for the implementation of reforms under Ujwal Discom Insurance Yojana (UDAY). Energy Ministry officials said the parameters of the agreement had been concluded with a strict monitoring clause. The MoU lists a range of centrally sponsored funds for discos when they achieve the required operational efficiency. The parameters are divided into three parts: financial, operational and monthly monitoring. In order to address the problem of irregular payments by discomoses, a high-level plenipotentiary committee (HLEC), headed at the time by PK Sinha, then cabinet secretary, had proposed a model in which debts on dismass would be recorded and a down payment would be made to electricity producers.