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UDAY has to be implemented in letter and spirit for the good of power sector, says former coal secretary

Updated : August 29, 2018 06:30 AM IST

The government should implement Ujwal DISCOM Assurance Yojana (UDAY) in letter and spirit for the good of power sector, said Anil Swarup, former secretary, Ministry of Coal.

"The problem that I see is that we are not looking at the reason for the losses that they are making, we are not looking at the rationalization of the tariff and the payments that are not being made to these power generation companies," Swarup said.

Read Also: Power NPA challenge: Here is what experts have to say

Nearly 25 power plants which can generate up to 20,000 megawatts of electricity are staring at an uncertain future. These plants which owe the banks over Rs 1.5 lakh crore may be taken to the insolvency courts.

This is because of the Reserve Bank of India's (RBI) February 12 circular which said that all stressed loans over Rs 2,000 crore have to be resolved by the banks in six months or taken to the National Company Law Tribunal (NCLT).

The six-month deadline ended on August 27.
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