Extension of timeline for issuance of Bonds by State Governments under the Scheme UDAY

Cabinet approves extension of timeline for taking over 50% of Outstanding Debt of DISCOMs

Question: Recently the Union Cabinet extended the timeline for taking over what percentage of the Outstanding Debt of DISCOMs, as existing on 30th September, 2015, by States?
(a) 60%
(b) 50%
(c) 100%
(d) 75%
Ans.(b)
Related facts:

  • On 22 June 2016 the Union Cabinet chaired by Prime Minister Narendra Modi, accorded an extension of timeline for taking over 50% of the Outstanding Debt of DISCOMs, as existing on 30th September, 2015, by States.
  • With this the cabinet has also extended the limit of borrowings by State of Jammu and Kashmir under UDAY (Ujwal DISCOM Assurance Yojana).
  • The time limits have now been extended by one year from the earlier stipulated date of 31st March, 2016.
  • Those States who were unable to join the scheme due to time constraints in completing the processes or inability to take major policy decisions such as joining UDAY due to on-going election processes,extension of the timeline will enable States to participate in this scheme.
  • So far 20 States and Union Territories have given their consent to join of which, 12 States, namely, Rajasthan, Uttar Pradesh, Chhattisgarh, Jharkhand, Punjab, Bihar, Haryana, Gujarat, Uttarakhand, Karnataka, Goa and Jammu & Kashmir have already signed MOUs with the Central Government.
  • UDAY, the most comprehensive power sector reform ever, was conceived to permanently resolve all DISCOM problems – past, present and future by providing DISCOMs with a clear roadmap and opportunity to become profitable in the next 3 years.

Reference:
http://pib.nic.in/newsite/PrintRelease.aspx?relid=146403
http://www.uniindia.com/cabinet-approves-extension-of-timeline-for-taking-over-debt-of-discoms/india/news/528196.html