Andhra Pradesh became the 13th State to sign the agreement and formally join the Central scheme for reviving financially-stressed electricity distribution utilities, called the Ujwal DISCOM Assurance Yojana (UDAY).
The move will help Andhra Pradesh's electricity sector get a ₹4,400 crore benefit over the next three financial years, an official statement said, adding that the benefit comes from savings in interest cost, reduction in aggregate technical & commercial losses, energy efficiency and coal reforms.
The Andhra Pradesh government will take on ₹11,000 crore of debt at its electricity distribution utilities, which would help them save ₹330 crore of interest cost a year.
An official statement on Friday said after Andhra Pradesh joining UDAY, the electricity distribution utility debt that will be restructured is around ₹2.16 lakh crore or half of the total outstanding debt, as on September 30, 2015.
Source- The Hindu