Consider the following statements regarding 39 Ujjwal Discom Assurance Yojana UDAY 39 1 States shall...........

Consider the following statements regarding 'Ujjwal Discom Assurance Yojana (UDAY)'

1. States shall take over 75% of DISCOM debt as on 30 September 2015 over two years.

2. Government of India will include the debt taken over by the States as per the above scheme in the calculation of fiscal deficit of respective States in the financial years 2015-16 and 2016-17.

Which of the given above statement (s) is/ are correct?

1 Only

2 Only

Both 1 and 2

Neither 1 nor 2

Explanation:

Second statement is incorrect i.e. Government of India will include the debt taken over by the States as per the above scheme in the calculation of fiscal deficit of respective States in the financial years 2015-16 and 2016-17.
Ujwal DISCOM Assurance Yojana (UDAY) is the financial turnaround and revival package for electricity distribution companies of India (DISCOMs) initiated by the Government of India with the intent to find a permanent solution to the financial mess that the power distribution is in. It allows state governments, which own the discoms, to take over 75 percent of their debt as of September 30, 2015, and pay back lenders by selling bonds. Discoms are expected to issue bonds for the remaining 25 percent of their debt.