Uday – How does it affect the people?
Why was UDAY created? UDAY, Ujwal DISCOM Assurance Yojana, was created with the sole aim of setting right the loss making power Distribution Companies. Every one of the distribution companies owned by the State Governments were making losses. Some of them, particularly, TANGEDCO, the Tamil Nadu DisCom has an accumulated loss of about Rs.5,786 Crores. Now, how to make these DisComs profitable? In simple terms, this is what UDAY does. Step 1: Write off all of their debts and pass it to the tax payer. Step 2: Improvements in performance shall be written down. But no penalty for not doing it. Step 3: Everything for the DisCom. Nothing or very little for the Consumer / Citizen. Naturally, this applies only to government owned power companies and not to privately held. Simple reason being, under the same conditions, they are not making losses! Tamil Nadu has signed it Why wouldn’t they? Given the fact that they have a huge debt to be writt