Not yet classifiedUJWAL
Ujwal DISCOM Assurance Yojana (UDAY)
A financial turnaround and revival package for electricity distribution companies (DISCOMs) to improve operational and financial efficiency.
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Official fee
₹0 — completely free
There is no fee for participating in the UDAY scheme as it is a government policy program for utility revival.
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Highlights and Media
Key Highlights
Debt Takeover by States
State governments take over 75% of the outstanding DISCOM debt by issuing sovereign bonds.
DISCOM Bond Issuance
Remaining 25% of the debt is restructured or paid back through bonds issued by DISCOMs.
Operational Efficiency
Compulsory smart metering, feeder segregation, and network upgrades to reduce AT&C losses.
UDAY Debt Restructuring Breakdown
Distribution of outstanding DISCOM debt restructuring responsibilities
State Government Takeover
75% of DebtTaken over by participating State Governments via sovereign bonds.
DISCOM Bond Issuance
25% of DebtDISCOMs issue bonds backed by state guarantees for the remaining balance.
Who is eligible
- Eligible state-owned or participating electricity distribution company (DISCOM) aligned with UDAY guidelines.
Eligibility rules · v1 · effective 1 January 2020
Who is not eligible
- UDAY is open to active and operational state-owned or private electricity distribution utilities.
How to apply
State Tripartite Agreement Signing
The State Government, Ministry of Power, and the respective State DISCOM sign a tripartite Memorandum of Understanding (MoU) to formally join UDAY.
Typical duration · 60 days
Debt Restructuring & Bond Issuance
State Government takes over 75% of the DISCOM debt by issuing sovereign bonds, and DISCOM issues bonds for the remaining 25% debt.
Typical duration · 90 days
Implementation of Operational Milestones
DISCOMs implement compulsory smart metering, feeder segregation, and upgrade sub-transmission networks to reduce AT&C losses.
Typical duration · 180 days
Sources
- Ministry of Power, Government of IndiaMINISTRY_PORTAL · Fetched 5 July 2026
Additional Details
Ujwal DISCOM Assurance Yojana (UDAY) is the financial turnaround and revival package for electricity distribution companies (DISCOMs) initiated by the Government of India in November 2015. The scheme is designed to find a permanent solution to the financial distress of the power distribution sector. Under UDAY, state governments take over 75% of the outstanding debt of their respective DISCOMs (as of September 30, 2015) by issuing sovereign bonds, while the remaining 25% is restructured or paid back via bonds issued by the DISCOMs themselves. The scheme is optional and aims to drive operational efficiency improvements, reduction of cost of power, reduction of interest cost, and enforcing financial discipline on DISCOMs through state alignment.