Ujwal DISCOM Assurance Yojana (UDAY) required a number of State governments to take over debt of power distribution companies in their books of accounts. Though this one time intervention made both debt and deficit measures more comprehensive, this has raised many challenges including comparability of deficit across States and long run fiscal implications of power sector debt on State finances.

 

Keywords: Power distribution companies, debt restructuring, deficits, Rajasthan

JEL Codes: H72, H74, H77, H81