RBI to place special securities under UDAY privately

Q.  RBI has announced private placement of special securities under UDAY. What does UDAY stand for?
- Published on 29 Mar 16

a. Ujjala Discom Assurance Yojana
b. Ujwal Discon Assurance Yojana
c. Ujwal Delhi Assurance Yojana
d. None of the above

ANSWER: Ujwal Discon Assurance Yojana
 
RBI asked market participants to subscribe to the special securities under the UDAY scheme through the private placement route to approach it by March 30th. The Ujjwal Discom Assurance Yojana has sought to revive the debt ridden power distribution companies in varying states. Special securities under UDAY are being issued by state governments of the following states:

- Bihar
- Haryana
- J&K
- Jharkhand
- Rajasthan
- Punjab

About UDAY

The scheme allows state governments to take 75% of the debt as on September 30, 2015 in 2 years and pay back lenders through sale of bonds.
For remaining 25 percent duties, discoms have been permitted to issue bonds Scheme is expected to save discos INR 1.8 lakh crore; discoms are struggling with NR 4.37 lakh crore debt

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