Rs 14,000-cr bonds to be issued under UDAY scheme – Tamilnadu

uday scheme

Good news as Tamilnadu state government is also working under UDAY (Ujjwal Discom Assurance Yojna ) Tamil Nadu government will issue on Monday bonds worth Rs 14,000 crore under UDAY. Sources are saying that  a bailout plan chalked out for the loss-making power distribution companies.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 Ujwal DISCOM Assurance Yojana .

Under the bond Tamil Nadu government proposes to issue special securities of Rs 14,000 crore, under the Ujjwal Discom Assurance Yojna Scheme (UDAY),- According To Reserve Bank Of India To participate for them to subscribe for their special bonds the following timeline have been given.Eligible participants can subscribe to these special bonds between 10.30 AM to 12 Noon on February 20, 2017.

Also according to reserve bank of India – “Allotment of securities and settlement will take place on February 22, 2017,” .

There are also some especial terms and conditions such as –

  • At minimum bid size of Rs 100 crore, the interest on bonds will be corresponding to yield on government securities as at the close of February 17.
  • it will have the sole discretion to accept or reject any/all bids. Earlier this month, Rajasthan government had informed about issuing bonds worth Rs 1,564 crore under UDAY.

States under UDAY Scheme – Eight states — Uttar Pradesh, Rajasthan, Chhattisgarh, Punjab, Jammu and Kashmir, Bihar, Jharkhand, Haryana — had floated bonds worth Rs 98,959.97 crore in 2015-16 under the UDAY

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