90% of Indian Discom debt covered by UDAY as Tamil Nadu joins

The joining of Tamil Nadu is particularly important given that it was the first state to report curtailment of solar energy. flickr: Tapas Ganesh

India’s major scheme to alleviate the debts of its distribution companies (Discoms) now covers 90% of the aggregate debt of all Discoms after the state of Tamil Nadu joined the programme today.

Aggregate Discom debt stands at roughly INR4,000 billion (~US$59 billion).

Last week, Assam and Telangana also signed up to the scheme, but the joining of Tamil Nadu is particularly important given that it was the first state to report curtailment of solar energy and has also seen payment delays. The state already has vast wind energy deployment and now has the most solar energy capacity of any state, putting added pressure on the grid.

Indian energy and mines minister Piyush Goyal said: “Today’s signing of UDAY will, I’m sure, give the confidence to the people all across the country, particularly in Tamil Nadu that the governments both at the centre and the state are working together […] so that we can continue to provide 24/7 affordable, quality, sustainable power.”

The central government will give incentives to Tamil Nadu and its Discom for improving power infrastructure in the state and lowering cost of power.

Goyal also listed overall net benefits of joining UDAY such as saving interest costs, reduction of ATN and other transmission losses, and interventions in energy efficiency.

The solar industry will watch closely to see if UDAY starts turning around the Discoms' financial woes and start to create a better environment for solar offtake.

Read Next

July 5, 2022
Indian energy giant Tata Power has signed a Memorandum of Understanding (MoU) with the Indian state government of Tamil Nadu to invest roughly INR3,000 crores (US$380 million) in setting up a 4GW cell and 4GW module factory in the state.
March 24, 2022
Vikram Solar has filed draft papers for its initial public offering (IPO) as it looks to raise funds for a 2GW integrated cell and module manufacturing plant in India.
December 8, 2021
A US development agency has approved up to US$500 million of debt financing for First Solar to support the manufacturer in setting up a thin film module production plant in India.
November 24, 2021
Tata Group is planning to set up a 4GW solar cell manufacturing unit in the Indian state of Tamil Nadu, according to a report from the Times of India.
September 13, 2021
The Indian state of Tamil Nadu is planning to develop 4GW of additional solar projects as well as new battery energy storage systems, according to local media.
July 20, 2021
Vikram Solar has completed a new 1.3GW solar module manufacturing facility in Tamil Nadu, India, taking its total manufacturing output to 2.5GW.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
October 4, 2022
New York, USA
On-Demand Webinars, Solar Media Events
October 11, 2022
Virtual event
Upcoming Webinars
October 18, 2022
10am (EDT) / 4pm (CEST)