SRINAGAR: The state on Tuesday signed a memorandum of understanding with New Delhi for participation in the government of India’s UDAY scheme that concerns purchase of electricity by the states.
“In consequence of the approval accorded by the State Administrative Council, which met on March 10 under the chairmanship of governor N N Vohra regarding the state’s participation in the government of India’s UDAY scheme, commissioner secretary Power Development Department Dheeraj Gupta today signed an MoU with the Union Ministry of Power in this regard,” an official spokesman said.
The step, he said, has been taken to improve the financial and operational efficiencies relating to the distribution of power.
“Under the scheme, the state government has been allowed restructuring of the outstanding debt of Rs 3,537.55 crore on account of power purchased from various Central Public Sector Undertakings.
“The State Finance department will now take measures to raise these Bonds and put in place a structural servicing mechanism for achieving this objective,” he said.