Parliament Question: Ujjwal DISCOM Assurance Yojana

GOVERNMENT OF INDIA MINISTRY OF POWER LOK SABHA UNSTARRED QUESTION NO.2025 ANSWERED ON 30.07.2026 UJJWAL DISCOM ASSURANCE YOJANA

2025. KM. SUDHA R:

Will the Minister of POWER

be pleased to state:

(a) the details of the objectives of the Ujjwal DISCOM Assurance Yojana (UDAY);

(b) whether the said yojana is mandatory for State Distribution Companies

(DISCOMs) and if so, the details thereof;

(c) whether annual hikes in domestic electricity consumption charges are mandatory and if so, the details thereof;

(d) the details of the financial revival of DISCOMs since the implementation of UDAY, Statewise and year-wise;

(e) whether any State Government or DISCOM has opted not to comply with the requirements of UDAY and if so, the details thereof including the financial consequences arising therefrom; and

(f) whether all the States have adopted UDAY and if so, the details thereof and if not, the list of States that have not implemented the scheme? A N S W E R THE MINISTER OF STATE IN THE MINISTRY OF POWER (SHRI SHRIPAD NAIK)

(a) to (f) : Ujjwal DISCOM Assurance Yojana (UDAY) was launched in 2015 with an overall objective of operational and financial turnaround of State-owned distribution utilities through financial restructuring and efficiency improvements in distribution sector. UDAY envisaged States taking over 75% of the outstanding debt of the DISCOMs, as on 30.09.2015, by issuing SDL (State Development Loan) Bonds.

Further, States were to take over future losses of DISCOMs in a graded manner as per the scheme guidelines. The scheme was optional and 27 States (except Odisha and West Bengal) and 5 UTs (except Delhi and Chandigarh) signed Memorandum of Understanding (MoU) under UDAY.

Under the scheme, total bonds worth Rs 2.34 lakh crore were issued for debt takeover, and DISCOM losses amounting to Rs 36,378 crore were taken over by the States as per the scheme guidelines. State-wise details are enclosed at Annexure I & II.

As a result of participation of DISCOMs under UDAY and various other reform measures undertaken thereafter by the Central and State Governments, the Aggregate Technical and Commercial (AT&C) losses at national level have reduced from 25.72% in FY15 to 15.04% in FY25 while the gap between Average Cost of Supply and Average Revenue Realized (ACS-ARR) has narrowed from Rs. 0.58/kWh to Rs. 0.06/kWh. These collective efforts have also resulted in distribution utilities, on an aggregate basis, achieving a profit after tax (PAT) of Rs 2,701 crore in FY25 for the first time since coming into force of Electricity Act, 2003. State-wise details at Annexure-III.

**********ANNEXURE-I ANNEXURE REFERRED IN REPLY TO PARTS (a) TO (f) OF UNSTARRED QUESTION NO. 2025 ANSWERED IN THE LOK SABHA ON 30.07.2026 ************* State wise details of Bonds issued under UDAY (in Rs crore) Total Bonds Bonds bonds Sl. Bonds to be State issued by issued by issued No. issued the States DISCOMs under UDAY

1. Andhra Pradesh 8,893 8,256 0 8,256

2. Assam 1,132 - 0 -

3. Bihar 2,332 2,332 777 3,109

4. Chhattisgarh 870 870 0 870

5. Haryana 25,950 25,950 0 25,950

6. Himachal 2,891 2,891 0 2,891 Pradesh

7. J&K 3,538 3,538 0 3,538

8. Jharkhand 6,924 6,136 0 6,136

9. Madhya Pradesh 7,360 7,360 0 7,360

10. M aharashtra 4,960 4,960 0 4,960

11. M eghalaya 125 125 0 125

12. P unjab 15,629 15,629 0 15,629

13. R ajasthan 62,422 62,422 12,368 74,790

14. T amil Nadu 22,815 22,815 0 22,815

15. T elangana 8,923 8,923 0 8,923

16. U ttar Pradesh 39,908 39,133 10,377 49,510 TOTAL 2,14,672 2,11,340 23,522 2,34,862 *************ANNEXURE-II ANNEXURE REFERRED IN REPLY TO PARTS (a) TO (f) OF UNSTARRED QUESTION NO. 2025 ANSWERED IN THE LOK SABHA ON 30.07.2026 ************* State wise details of Losses taken over under UDAY (in Rs crore) Total losses to be taken Actual losses Sl. No. State over by States taken over

1. Andhra Pradesh 3,100 3,100

1.

2. Assam 146 152

3. Bihar 2,454 2,454

4. Chhattisgarh 546 288

5. Haryana 10 10

6. Himachal Pradesh 02 02

7. Jharkhand 862 862

8. Madhya Pradesh 3,798 3,799

9. Meghalaya 358 412.5

10. Punjab 821 821

11. Rajasthan 99 -

12. Tamil Nadu 10,132 9,366

13. Telangana 5,891 9,340

14. Uttar Pradesh 4,075 5,771 TOTAL 32,295 36,378 ************ANNEXURE-III ANNEXURE REFERRED IN REPLY TO PARTS (a) TO (f) OF UNSTARRED QUESTION NO. 2025 ANSWERED IN THE LOK SABHA ON 30.07.2026 ************* Profit/ (Loss) on accrual basis State (PAT) (Rs crore) Andaman & Nicobar Islands (91) Andhra Pradesh 190 Arunachal Pradesh - Assam 308 Bihar 2,079 Chhattisgarh (407) Delhi 9,989 Goa (119) Gujarat 3,984 Haryana (46) Himachal Pradesh 342 Jharkhand (1,928) Karnataka (8,869) Kerala 574 Ladakh 26 Madhya Pradesh (2,561) Maharashtra 2,324 Manipur 5 Meghalaya (36) Mizoram 32 Nagaland 56 Odisha 439 Puducherry 281 Punjab 6,216 Rajasthan 1,262 Sikkim (37) Tamil Nadu 2,073 Telangana (2,462) Tripura (373) Uttar Pradesh (10,625) Uttarakhand (47) West Bengal 125 Grand Total 2,701 *************