Srinagar, Oct 26: The Power Department has paid Rs 284 Crore towards interest on bonds issued under Ujwal Discom Assurance Yojana (UDAY) scheme, Comptroller and Auditor General (CAG) report has revealed.
The CAG report that was tabled in the last session Parliament stated that the state government has to pay interest on the bonds amounting Rs 353.755 Crore will also be maturing every year from 2021-22 to 2031-32.
A CAG report available with ‘Precious Kashmir’ reads that with the objective of ensuring financial turnaround of Power Distribution Companies (DISCOM), the Ministry of Power Government of India (GoI) introduced (November 2015) the Ujwal Discom Assurance Yojana (UDAY) to improve the operational and financial efficiency of the State DISCOM.
States were to take 75 percent of DISCOM debt as on September 2015 over two years i.e. 50 per cent of DISCOM debt shall be taken in 2015-16 and 25 per cent in 2016-17.
In March 2016, the Ministry of Power, Government of India and Government of Jammu and Kashmir signed a Memorandum of Understanding (MOU) under the scheme UDAY-“Ujwal DISCOM Assurance Yojana” and borrowed funds to the tune of Rs 3,537.55 crore (2.140 crore in 2015-16 and 1,397.55 crore in 2016-17) from RBI by issue of Non Statutory Liquidity Ratio (SLR) bond at the rates ranging between 7.07 per cent to 8.72 per cent with maturity date from March 2022 to October 2031.
The function of electricity supply to consumers is being handled departmentally in the State so this money was utilised by the State Government to clear liabilities of the Central Public Sector Undertakings (CPSU).
The State Government has to pay interest on the bonds and bonds amounting Rs 353.755 crore will also be maturing every year from 2021-22 to 2031-32. During 2017-18, the State Government paid Rs 284.12 crore towards interest on bonds issued under UDAY scheme.