Jharkhand, the first state to sign up for the UDAY scheme, is defaulting in payment even under this scheme. On December 6, 2015, Union Power Minister Piyush Goyal thanked the BJP-ruled State for taking the lead, tweeting: "24x7 power is not far."
The State raised a loan and cleared historic dues of Rs 5,553 crore, accumulated between 2001 and September 2015 - paying Rs 4,770 crore to statutory generation utility Damodar Valley Corporation (DVC) and Rs 783 crore to Coal India.
A year later, however, Jharkhand has piled up Rs 1,300 crore in fresh dues to DVC and Rs 32 crore to Coal India. It has simply stopped paying dues to DVC for the purchase of roughly 700 MW a day.
Jharkhand Chief Secretary Raj Bala Verma and Additional Chief Secretary - Energy R K Srivastava are said to be silent on the issue.
UDAY is the third debt-restructuring program introduced to help discoms. The first was in 2001 an d another one followed in 2012.
While launching UDAY, the Centre had said that discoms were trapped in a vicious cycle, with operational losses being funded by debt. "Outstanding debt of Discoms has increased from about Rs 2.4 lakh crore in 2011-12 to about Rs 4.3 lakh crore in 2014-15, with interest rates up to 14-15 percent," it had said in a November 2015 release.
The Central government had claimed that UDAY would be a "permanent resolution of past as well as potential future issues of the sector." So far, 90 percent of the States have joined the scheme, the last being Tamil Nadu, a State that had an aggregate debt of Rs 75,000 crore.