Twenty-five states and one Union Territory have signed MoUs with the Central government to participate in the Ujwal Discom Assurance Yojana. All electricity distribution companies of India are covered under the UDAY's fold. State bonds worth Rs. 2.09 lakh crore; and DISCOM Bonds worth Rs 0.24 lakh crore have been issued.
UDAY is the financial turnaround and revival package for electricity distribution companies of India initiated by the government of India with the intent to find a permanent solution to the financial mess that the power distribution is in.
According to IFS Joint Secretary, Ministry of Power, Dr AK Verma, the power sector is likely to attract around $1 trillion in investments by 2030 across segments such as coal-based and renewable power.
As per IEA estimates, India would invest about $ 845 billion in transmission and distribution networks between 2015 and 2040.
Investment opportunities exist in following segments:
- Rs 2.9 lakh crore for -- smart metering, distribution automation, battery storage and other smart grid market segments over the next decade
- Rs 5.5 lakh crore for -- solar power for capacity addition of 100,000 MW at capital cost of Rs 5.5 Cr/MW
- Rs 4.4 lakh crore for stressed thermal portfolio of more than 45,000 MW capacity.
New avenues of investment will emerge on the distribution side, for example, solar rooftop, franchisee, DSM, smart meters etc. Discoms turnaround through UDAY will further improve the overall credibility of power sector, thereby making it more investment friendly.