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

Share on facebook
Share on twitter
Share on linkedin
Share on reddit
Share on email
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

September 1, 2020
Indian Railways has revealed plans to install 20GW of solar as it ramps up efforts to become a net-zero carbon emitter before 2030.
February 4, 2020
1.2GW hybrid tender coupling hydro, batteries, solar and wind achieves highly competitive tariffs versus coal power, say prominent industry figures.
January 14, 2020
One of the world's largest employers set to progress with renewable ambitions by installing 500MW on rooftops, another 500MW on land and adding 200MW of wind by 2021-22.
April 17, 2019
Reservoir installation by Greenam Energy to power factory complex in Tamil Nadu and sell excess electricity to state-owned utilities.
March 4, 2019
Continuing a gargantuan tender spree, SECI is looking to procure solar and storage in desert and mountainous states as well as the far south.
March 4, 2019
India's solar tender spree continues with more alternative versions of the technology.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
May 11, 2021
Upcoming Webinars
May 26, 2021
Session 1 - 7:00 AM (BST) | Session 2 - 5:00 PM (BST)
Solar Media Events
June 15, 2021
Solar Media Events
July 6, 2021