Under the UDAY (Ujjwal Discom Assurance Yojna), many states have issued the bonds to take over some part of debt on utilities which is currently Rs. 4.3 Trillion for all the utilities in the country. Under this scheme (UDAY) 75% of the total debt will be converted in to the bonds which would be backed by state govt.
Haryana state has also joined the list of states who have taken benefit of this scheme. State has signed a takeover deal with the both companies; Uttar Haryana Bijli Vitran Nigam and Dakshin Haryana Bijli Vitran Nigam, and Union Power Ministry. Under this provision, Haryana Govt will issue bonds to raise about 25,950 Cr for retiring the accumulated debt of its both power discoms. These bonds will have a five year moratorium on repayment and only interest in this period would be included in the fiscal deficit of the state which is capped up to 3% of the GDP.
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