Mumbai: The RBI on March 28 asked market participants interested in subscribing to the special securities under UDAY scheme through private placement route to approach it by March 30. Power Ministry had launched the Ujjwal Discom Assurance Yojana (UDAY) in November last for revival of debt ridden power distribution companies (DISCOMs) in different states.
The special securities under UDAY are being issued by governments of Bihar, Haryana, Jammu and Kashmir, Jharkhand, Punjab and Rajasthan.
"The Reserve Bank of India (RBI) has asked market participants who are interested in subscribing to the Special Securities under UDAY Scheme through private placement route to approach the Internal Debt Management Department, RBI, Central Office latest by March 30, 2016," the central bank said in a statement.
Under the scheme, the Centre allows state governments, which own the discoms, to take over 75 per cent of the debt as of September 30, 2015 in two years and pay back lenders by selling bonds.
For the remaining 25 per cent dues, discoms have been allowed to issue bonds. The scheme is expected to help discoms save around Rs 1.8 lakh crore in the next three years.
The cumulative debt of discoms is Rs 4.37 lakh crore. Sources said banks have been allowed to keep UDAY scheme bonds under the held-to-maturity (HTM) category. This will ease pressure on bond yields and debt market, sources said.
