JAMMU: The State Government had cleared decks for restructuring of outstanding power purchase liabilities of Power Development Department through raising of debt by floating of bonds by Government.
The SAC, which met here under the Chairmanship of Governor N N Vohra approved the proposal for the restructuring of outstanding power purchase liabilities of Power Development Department through raising of debt by participating in ‘UDAY’ scheme and floating of bonds by Government, an Official Spokesman said.
Power Development Department has a huge revenue deficit during Financial Year 2014-15 amounting to Rs 3913.50 crore, the spokesman said.
UDAY scheme provides an opportunity to states to restructure their costly debt by reducing interest burden on DISCOM (State Government in case of J&K), he said.
The debt taken over by the State under this scheme would not be counted against the fiscal deficit limit of respective State in the financial year 2015-16 and 2016-17, he said.
UDAY scheme envisages State Government to ensure that DISCOMs improve their operational efficiencies, particularly reduce Aggregate Technical and Commercial (AT&C) losses and cost of power procurement, so that ACS and ARR gap is bridged within the agreed frame work. (AGENCIES)
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