TSNPDCL joins Ujwal Discom Assurance Yojana

Warangal: Northern Power Distribution Company of Telangana Limited (TSNPDCL) has joined Ujwal Discom Assurance Yojana (UDAY), which is aimed at improving performance of State-run power distribution companies.A memorandum of understanding (MoU) in this connection was signed between Telangana State government and Union Ministry of Power in New Delhi at the launch of UDAY portal and mobile App on Wednesday. The initiative will achieve operational and financial turnaround of the DISCOMs.

The State government Advisor S Venugopala Chary, Chairman and Managing Director of TSNPDCL Annamaneni Gopal Rao, Special Chief Secretary (Energy) Ajay Mishra and others attended the MoU signing, where Union Power Minister Piyush Goyal and Union Secretary-Power, PK Pujari were present.

According to the NPDCL C&MD, the Telangana government will take over Rs 8,923 crores of the total Rs 11,897 crores of the Discoms debt. The government will take over of Rs 3,378 crores of the total Rs 4,505 cores of debt (75 per cent of the NPDCL debt outstanding as on September 30, 2015)The balance debt will be re-priced or issued as State-guaranteed Discom bonds. This will amount to annual saving in the interest cost of Rs 387 crores to Telangana Discoms. The interest cost on future borrowings is also expected to reduce, providing a saving of around Rs 30-40 crores to the state, he added in statement here on Wednesday.