CHENNAI: After several rounds of negotiations, Tamil Nadu is to join the Centre’s Ujwal Discom Assurance Yojana (UDAY Scheme) on January 9.
Electricity Minister P Thangamani will sign the agreement in this regard in the presence of Union Minister of State for Power, Piyush Goyal.
The cabinet which met on January 4, gave its nod for the State joining UDAY scheme. Former Chief Minister J Jayalalithaa firmly opposed UDAY scheme on various grounds and urged the Centre to rectify the clauses which meant harm to Tamil Nadu. For the first time, some headway was made when Goyal met Jayalalithaa at the Secretariat on July 15.
Following this, TANGEDCO chairman P Saikumar and other officials held further talks with Power Ministry officials and put forth the State’s requirements.
On October 21 last year, a team led by Thangamani held talks with Union Power Minister and an agreement was reached on many points. It was said that the State government would be joining UDAY scheme within a few months. The key demands of Tamil Nadu government, agreed by the Union Power Ministry include - no quarterly tariff revision, bonds to be issued by TANGEDCO for repaying loans should be for 15 years with five-year moratorium and exemption from Fiscal Responsibility and Budgetary Management (FRBM) norms for the bonds allowed for two years.